alt Hacker NewsThis doesn't increase their profits because, consistent with economics, increasing prices reduces quantity. Profit depends on the amount you sell, not just the price.
This doesn't increase their profits because, consistent with economics, increasing prices reduces quantity. Profit depends on the amount you sell, not just the price.
That's true in absolute numbers (sales volume goes down), but in terms of margins (profit / sale) they're still doing better than they should have. As the study in TFA implies, if the consumers paid more than the tariffs were collected, the retailer in the middle must have pocketed the difference.