[RobFromGa]

We are not talking about stages of production. We are talking about a single business.

The price components I am talking about are the costs that a business has which when added together makes up the price.

As an example, the pizza shop again:

If 20% of his costs are due to buying ingredients, and
20% by rent, and
40% by labor, and
20% by utilities.

That's 100% of his costs accounted for.

If the most that any one of these inputs is reduced is by 9%, then the most that his total can drop is 9%. It is not very difficult math.

[lewislynn]

If the most that any one of these inputs is reduced is by 9%, then the most that his total can drop is 9%. It is not very difficult math.

It's the simple logic that confuses them.

[Principled]

If the most that any one of these inputs is reduced is by 9%, then the most that his total can drop is 9%

This is not germane Rob. It is immaterial. It's not what we're talking about. It's not related to the nrst.

We're talking about whether or not a savings of 9% at each stage of production leads to a total savings of a higher percentage. It does.

[Principled]

If the most that any one of these inputs is reduced is by 9%, then the most that his total can drop is 9%. It is not very difficult math.

For a 9% drop to occur, each component in your example would have to drop 9%.

And in a service business (one stage), tax costs are higher.