Question

During a period of acute shortage of raw materials, the prices of some manufactured goods were raised by 25%. After the shortage was over, prices were lowered by 15%. If the original price of an article was $56, find its price after the shortage was over. Would it have been cheaper if its price had been raised by 8% at the beginning of the shortage and left uncharged at the end?

Answer 1

1.25 * 56 * .85 = 59.50

1.08 * 56 = 60.48