Quote:
Originally Posted by raulf
A case in Point:
The spanish e-retailer leer-e has a book collection called Palabras Mayores. The price of these books, including VAT, when the VAT was 16% was €5 each. Today, they already charge the new 4% VAT (you can see for yourself adding one to the shopping cart), so the new final price of the books is ... you guessed it, €5.
Now, €5 is a really low price, so this isn't the worst case of "greedy" booksellers, and i can understand them doing that, nevertheless is a typical case of "new VAT, old price". |
An example of inelasticity of price in relation to a VAT decrease