a. Lucy's Lunch and Latte has found that customers are put off by the local tourism tax of 9% that is added to their bill. If Lucy decides to cover the tax herself, rather than adding it to the customer's bill, what percent will the customer see in savings?
b. Lucy decides to quietly raise her prices before announcing that she will pay the 9% tax. What percent should she raise her prices so that she will still end with the same amount as when the customer paid the tax, rather than her?
new price = old price(1+percentage)
new price = old price(1-percentage)
3. The Attempt at a Solution
let the price be 100
a. 100(1+9%)(1-9%)=99.19, 1-99.19/100=0.0082, the customer saves 0.82%
b. for this question, I don't quite understand this question.
Fot a, it seems that I did it completely wrong because b says Lucy doesn't want to pay the tax.
Can someone give me a hit or suggestion to do these two questions? Thanks!