cm0002@europe.pub to Memes@sopuli.xyz · 2 months agoMama didn't raise no quittereurope.pubimagemessage-square47linkfedilinkarrow-up1434arrow-down112
arrow-up1422arrow-down1imageMama didn't raise no quittereurope.pubcm0002@europe.pub to Memes@sopuli.xyz · 2 months agomessage-square47linkfedilink
minus-squareyaroto98@lemmy.worldlinkfedilinkarrow-up20·2 months agoWith fewer people smoking, the price of cigs sure didn’t drop.
minus-squareToiletFlushShowerScream@piefed.worldlinkfedilinkEnglisharrow-up5arrow-down1·2 months agoNow that… That is interesting man. I’ve never thought about that. But WHY?!
minus-squarecynar@lemmy.worldlinkfedilinkEnglisharrow-up4·2 months agoMost of the cost is production and taxes. If demand falls, production resources (land etc) are diverted to more profitable crops. This makes supply fall until prices reach a new equilibrium. Taxes then add a fixed offset to that.
With fewer people smoking, the price of cigs sure didn’t drop.
Now that… That is interesting man. I’ve never thought about that.
But WHY?!
Most of the cost is production and taxes. If demand falls, production resources (land etc) are diverted to more profitable crops. This makes supply fall until prices reach a new equilibrium.
Taxes then add a fixed offset to that.