2 ms·
> If I didn't have to do that it would be my profit. If your competitors didn’t have to do that either there would be pressure on prices and a new price would
by kgwgk 7y ago
> If I didn't have to do that it would be my profit.
If your competitors didn’t have to do that either there would be pressure on prices and a new price would be set by demand/supply.
When VAT changes (usually increasing) if doesn’t just affect profits. It also affects prices (to what extent and how rapidly depends on many factors).
- bluecalm 7y agoYes, the same way if suddenly raw materials got more expensive. The prices would increase and the companies would make less money as fewer people would be buying. That is assuming the price before the cost increase or VAT was set at a point to maximize profits.