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[Canada] Canadian Politics Redux

Started by Josephus, March 22, 2011, 09:27:34 PM

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Jacob

Quote from: Admiral Yi on March 05, 2025, 07:24:42 PMThey drive down revenue of exporters.

Presumably only if the buyers have an alternative or can do without. I have no idea how true that is for Canadian potash exports to the US.

Admiral Yi

Quote from: Jacob on March 05, 2025, 07:31:52 PMPresumably only if the buyers have an alternative or can do without. I have no idea how true that is for Canadian potash exports to the US.

No.  What you're describing is infinite elasticity of demand.  I.e. the price of potash including taxes rises one penny, all users switch to other sources or substitute...mandrake root? What I described hold true if elasticity of demand is greater than zero.

crazy canuck

Quote from: Admiral Yi on March 05, 2025, 07:44:18 PM
Quote from: Jacob on March 05, 2025, 07:31:52 PMPresumably only if the buyers have an alternative or can do without. I have no idea how true that is for Canadian potash exports to the US.

No.  What you're describing is infinite elasticity of demand.  I.e. the price of potash including taxes rises one penny, all users switch to other sources or substitute...mandrake root? What I described hold true if elasticity of demand is greater than zero.

There are no other sources or substitutions.

Jacob

#22518
Quote from: Admiral Yi on March 05, 2025, 07:44:18 PMNo.  What you're describing is infinite elasticity of demand.  I.e. the price of potash including taxes rises one penny, all users switch to other sources or substitute...mandrake root? What I described hold true if elasticity of demand is greater than zero.

I wasn't really asking about econ 101 supply and demand theory in the abstract, and more about the specifics of likely scenarios.

If there's an export tax how likely is it to drive down the volume of export (and by how much), and what proportion of the value of the tax would eat into the profits or volumes for the exporters vs the profits for farmers vs being passed on to the consumers?

Admiral Yi

Quote from: Jacob on March 05, 2025, 07:54:43 PMI wasn't really asking about econ 101 supply and demand theory in the abstract, and more about the specifics of likely scenarios.

If there's an export tax how likely is it to drive down the volume of export (and by how much), and what proportion of the value of the tax would eat into the profits or volumes for the exporters vs the profits for farmers vs being passed on to the consumers?

The question to which I responded was who, besides consumers and the government, would be affected by an export tax.  To which you responded with an incorrect assertion about the conditions under which exporters would be affected by an export tax.  Which I tried to correct.  To which you objected.

If your preference is not to be corrected by me, or to be addressed by me, or an American, it does seem that the clearest way to achieve that is to ask.

mongers

Quote from: Admiral Yi on March 05, 2025, 08:24:36 PM
Quote from: Jacob on March 05, 2025, 07:54:43 PMI wasn't really asking about econ 101 supply and demand theory in the abstract, and more about the specifics of likely scenarios.

If there's an export tax how likely is it to drive down the volume of export (and by how much), and what proportion of the value of the tax would eat into the profits or volumes for the exporters vs the profits for farmers vs being passed on to the consumers?

The question to which I responded was who, besides consumers and the government, would be affected by an export tax.  To which you responded with an incorrect assertion about the conditions under which exporters would be affected by an export tax.  Which I tried to correct.  To which you objected.

If your preference is not to be corrected by me, or to be addressed by me, or an American, it does seem that the clearest way to achieve that is to ask.

I shall refrain from commenting.  :shutup:
"We have it in our power to begin the world over again"

Jacob

Quote from: Admiral Yi on March 05, 2025, 08:24:36 PMThe question to which I responded was who, besides consumers and the government, would be affected by an export tax.  To which you responded with an incorrect assertion about the conditions under which exporters would be affected by an export tax.  Which I tried to correct.  To which you objected.

If your preference is not to be corrected by me, or to be addressed by me, or an American, it does seem that the clearest way to achieve that is to ask.

:huh:

You seem to be having a very different conversation than the one I thought I was having.

Zoupa