To make an item, we have many things that contribute to the total cost of that item. We have, among other things:

    • labor
    • the total post-taxed cost of the materials
    • the pre-taxed cost of the materials
    • the cost of utilities (i.e. internet, electricity, heating, etc.)
    • the cost of transporting the materials
    • the import tax of the goods
    • the retail sales tax
    • the middleman’s markup
    • the commission of the seller

    We all know that if we increase any of these things, that the price of this good should also increase. But the pricing sensitivity of each of these things to the final price is all different.

    Has there been any study on how the final price of an item increases with an increase in one of these inputs?

    Suppose that there were a 10% price increase in only one of the inputs of a consumer item. Has there been studies on the net price increase of this item?
    byu/throwRA_157079633 inAskEconomics



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