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Publishers are happy
Well, they count on the increase of sales derived from lower prices.
Retailers usually sell books for prices imposed by the publisher.
But you are right to point that prices are "completely elastic" to VAT in case of increase, but can be a little "inelastic" in case of decrease; meaning that usually 1% up VAT means at least 1% up in prices to the final consumer; and -1% VAT sometimes means 0% difference in final price.
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