By what percentage can the dealer now reduce the price


Problem

1. A TV costs £940 including 17.5% VAT. Find the new price if VAT is reduced to 8%.

2. An antiques dealer tries to sell a vase at 45% above the £18 000 which the dealer paid at auction.

(a) What is the new sale price?

(b) By what percentage can the dealer now reduce the price before making a loss?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: By what percentage can the dealer now reduce the price
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