Inflation here? gas/grocery prices just continue to climb
Yup!
(said in Schoolhouse Rock voice)
Teacher: It's basic economics . . . because when demand increases, prices increase . . . so when the price of product A made in Mexico goes up 25% because of a tariff, the customers start buying the substitute product B made in USA, and that increased demand for product B raises the price!
Kid: So you mean, even though the tariff targets the products of one or several countries, they cause a domino effect that raises all of the prices?
Teacher: That's what's called a market economy!
Yup!
(said in Schoolhouse Rock voice)
Teacher: It's basic economics . . . because when demand increases, prices increase . . . so when the price of product A made in Mexico goes up 25% because of a tariff, the customers start buying the substitute product B made in USA, and that increased demand for product B raises the price!
Kid: So you mean, even though the tariff targets the products of one or several countries, they cause a domino effect that raises all of the prices?
Teacher: That's what's called a market economy!