In the wake of the big Apple-Samsung case and rising patent litigation in the tech industry, a sketch from the concerned economist Alex Tabarrok of the blog Marginal Revolution:
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The rally continued the following day as beneficiaries of lower rates, such as smaller capitalization stocks and real estate, rallied.
Pricing power remains a growth lever, but volumes are showing strain. The new tariff regime is set to test the limits of pricing power further. Companies are still managing to push through price gains, but elasticity is no longer negligible. And tariffs threaten to raise input costs, squeezing margins.