That’s not how capitalism works. If the tobacco industry could raise prices and get more money today, they would. Since they haven’t, you have to assume that any increased taxes or burden on them will reduce their profits.
Yes, it might increase prices to the end consumer, because the demand curve will change when the costs change. But that doesn’t mean the tobacco industry is making any more money. If it did, they would already charge more.
“That guy happened to tangentially mention tax so you must’ve been talking about tax, herp derp”
Edit: Is it really that hard to figure out that I started this whole thread in reference to the topic of prohibition as the title suggests? I’m not talking about taxes. I never mentioned taxes. I don’t care that anyone else is talking about taxes.
That’s not how capitalism works. If the tobacco industry could raise prices and get more money today, they would. Since they haven’t, you have to assume that any increased taxes or burden on them will reduce their profits.
Yes, it might increase prices to the end consumer, because the demand curve will change when the costs change. But that doesn’t mean the tobacco industry is making any more money. If it did, they would already charge more.
Wrong. Prohibition increases demand.
Edit: Based off some replies, I think a lot of people are forgetting some rudimentary aspects of the concept of “demand”, so allow me to help:
putting a tax on something is not the same as prohibiting it.
Go ahead and look at the post title
go ahead and look at the comment you were replying to
“That guy happened to tangentially mention tax so you must’ve been talking about tax, herp derp”
Edit: Is it really that hard to figure out that I started this whole thread in reference to the topic of prohibition as the title suggests? I’m not talking about taxes. I never mentioned taxes. I don’t care that anyone else is talking about taxes.