Principles of Economics // Fall 2025
marcio.santetti@emerson.edu
Who are the first affected by barriers to trade (e.g., tariffs)?
And second?
Who is paying for Trump’s tariffs? So far, it’s US businesses. (PIIE)
Consumers Are Pulling Back, Spooked by Tariff-Related Price Increases (NYT)
If not always, consumers are usually price takers.
Consumers vs. higher prices
Not just prices.
Demand is also affected by:
Changes in taste;
Price of complements;
Price of substitutes.
Consumers have only so much income to spend.
Two categories:
Normal goods;
Inferior goods.