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They would reduce it because an input price has gone down.Why not? if their taxes and fees changed, and if consumers pick up the taxes and fees channeled through price, why wouldn't they reduce price?
Becuase they haven't.
Why?
Why should they.
They were selling the products at the prices they were at....why reduce it?
if the argument is that firms raise prices commensurate with an increase in costs such as a tax, it would follow that competition would force firms to reduce prices commensurate with a decrease in costs.
For example, if the government abolished the gas tax at all levels tomorrow we would expect the price of gas to decline, correct? If we removed the subsidy on corn we would expect the price of corn to rise as well, yes?
They would reduce it because an input price has gone down.Becuase they haven't.
Why?
Why should they.
They were selling the products at the prices they were at....why reduce it?
if the argument is that firms raise prices commensurate with an increase in costs such as a tax, it would follow that competition would force firms to reduce prices commensurate with a decrease in costs.
For example, if the government abolished the gas tax at all levels tomorrow we would expect the price of gas to decline, correct? If we removed the subsidy on corn we would expect the price of corn to rise as well, yes?
absolutely...yes.
Why?
Becuase it is widespread, well known, and noticeable.
However.....what was the cost increase to a 10 item to cover the swipe charge? Ten cents?
Not worthy of lowering it.
But lets be real...they wont...it is not newsworthy...and who the hell is going to care?
They would reduce it because an input price has gone down.
if the argument is that firms raise prices commensurate with an increase in costs such as a tax, it would follow that competition would force firms to reduce prices commensurate with a decrease in costs.
For example, if the government abolished the gas tax at all levels tomorrow we would expect the price of gas to decline, correct? If we removed the subsidy on corn we would expect the price of corn to rise as well, yes?
absolutely...yes.
Why?
Becuase it is widespread, well known, and noticeable.
However.....what was the cost increase to a 10 item to cover the swipe charge? Ten cents?
Not worthy of lowering it.
The cost was 22 cents per transaction higher - a significant burden, especially according to retailer association who fought hard for this change.
But lets be real...they wont...it is not newsworthy...and who the hell is going to care?
So if we increase the corporate tax rate, which is actually only paid by about 30% of businesses, from 35% to 40% - and that's on profits, so realistically we're talking about a half a percent or so increase in input price on some successful items - the companies that see this tax will pass it along, while the companies that don't pay it because they are not IRS-defined profitable won't? Or will the price stay the same across the board?
Looks like more "unintended consequences".
Wells Fargo, my bank, will be doing the same thing.
Guess I'll be going to the local credit union for my banking.
absolutely...yes.
Why?
Becuase it is widespread, well known, and noticeable.
However.....what was the cost increase to a 10 item to cover the swipe charge? Ten cents?
Not worthy of lowering it.
The cost was 22 cents per transaction higher - a significant burden, especially according to retailer association who fought hard for this change.
But lets be real...they wont...it is not newsworthy...and who the hell is going to care?
So if we increase the corporate tax rate, which is actually only paid by about 30% of businesses, from 35% to 40% - and that's on profits, so realistically we're talking about a half a percent or so increase in input price on some successful items - the companies that see this tax will pass it along, while the companies that don't pay it because they are not IRS-defined profitable won't? Or will the price stay the same across the board?
let me answer it this way...
When there is an increase in operationg costs, it is usually passed on to the consumer...assuming the increase is across the board in the industry...and not for one entity.
When there is a decrease in operating costs, it rarely is deducted from the retail price of the product for the price of the prodcut has already been acceptd by the consumer
you know I enjoy bantering with you 8537...but I gotta go...need to close out the books for the month.
Cyas on Monday.
My prediction! A lot less swiping. A lot less consuming! Thanks for screwing us over once again demonRats.. Thanks.
The cost was 22 cents per transaction higher - a significant burden, especially according to retailer association who fought hard for this change.
So if we increase the corporate tax rate, which is actually only paid by about 30% of businesses, from 35% to 40% - and that's on profits, so realistically we're talking about a half a percent or so increase in input price on some successful items - the companies that see this tax will pass it along, while the companies that don't pay it because they are not IRS-defined profitable won't? Or will the price stay the same across the board?
let me answer it this way...
When there is an increase in operationg costs, it is usually passed on to the consumer...assuming the increase is across the board in the industry...and not for one entity.
When there is a decrease in operating costs, it rarely is deducted from the retail price of the product for the price of the prodcut has already been acceptd by the consumer
In any competitive market, a decrease in input costs leads to an decrease in price. Now it's pretty obvious that banking isn't by definition a competitive market - but many of the small retailers probably are, and on items where that 22 cents is significant (say, a coffee shop or a quick mart) why wouldn't the competition drive the price to previous profit level?
No, I won't be waiting at Starbucks. First, because I fucking hate Starbucks and second because my credit union and my local coffee shop don't rely on BoA.let me answer it this way...
When there is an increase in operationg costs, it is usually passed on to the consumer...assuming the increase is across the board in the industry...and not for one entity.
When there is a decrease in operating costs, it rarely is deducted from the retail price of the product for the price of the prodcut has already been acceptd by the consumer
In any competitive market, a decrease in input costs leads to an decrease in price. Now it's pretty obvious that banking isn't by definition a competitive market - but many of the small retailers probably are, and on items where that 22 cents is significant (say, a coffee shop or a quick mart) why wouldn't the competition drive the price to previous profit level?
so i imagine you will be waiting breathlessly for that 22 cents off your Starbucks monday morning......let us know how that turns out....
