Good example, but what if you took it the other way? Examine the cumulative savings of tax on the final purchaser of a bicycle perhaps?
"Good example, but what if you took it the other way? Examine the cumulative savings of tax on the final purchaser of a bicycle perhaps?"
You can use any product that you want. The way the model works, the primary variables are (1) how many levels in the supply chain you assume and (2) what pre-tax profit margins you assume. The tax rate is also an assumption, but I tend to think that the results aren't that sensitive to it.