Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site watdaisy.UUCP
Path: utzoo!watmath!watdaisy!ndiamond
From: ndiamond@watdaisy.UUCP (Norman Diamond)
Newsgroups: net.legal
Subject: Re: Corporate income tax
Message-ID: <7060@watdaisy.UUCP>
Date: Tue, 12-Mar-85 13:19:00 EST
Article-I.D.: watdaisy.7060
Posted: Tue Mar 12 13:19:00 1985
Date-Received: Wed, 13-Mar-85 00:11:23 EST
References: <683@whuxlm.UUCP> <461@lsuc.UUCP> <429@terak.UUCP> <352@desint.UUCP>
Organization: U of Waterloo, Ontario
Lines: 18

> Doesn't anybody study economics any more?  A basic principle is that
> business do *not* necessarily pass their costs on to the consumer.  Some
> businesses can pass on more than their costs.  But most businesses, faced
> with a 5% cost increase, find themselves only able to raise prices 4% without
> losing money due to decreased demand.  Believe me, as a businessman I *know*.
> -- Geoff Kuenning

You mean, the immediate response can only be 4%, and the rest trickles through
later.
-- 

   Norman Diamond

UUCP:  {decvax|utzoo|ihnp4|allegra}!watmath!watdaisy!ndiamond
CSNET: ndiamond%watdaisy@waterloo.csnet
ARPA:  ndiamond%watdaisy%waterloo.csnet@csnet-relay.arpa

"Opinions are those of the keyboard, and do not reflect on me or higher-ups."