>>510182156Since you are too brown for abstract reasoning I will use a concrete example.
A 300ct bottle of 81mg Bayer aspirin costs $19.49
A 300ct bottle of 81mg generic aspirin at the same store costs $15.49
This is a chemically IDENTICAL product.
If price competition were strong, Bayer would never sell aspirin. But Bayer earned €1.3bn in the last 3 months.
Now what I am asking is this: if Bayer’s costs go up 30% due to the EU tarriffs, why would they raise the price of their bottle of aspirin to $25.49? If they would not see revenues decrease by doing this, why would they not be selling aspirin for $25.49 now? “Price competition”? They’re already being undercut by 30%, it hasn’t caused their prices to fall yet.