Principles of Economics // Spring 2026
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)
After a Lag, Consumers Begin to Feel the Pinch of Tariffs (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.