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?
The price change factor is
1.25 * 0.85 = 1.063
That is less than 1.08
The answer is no. You end up with a higher price if you apply a 8% raise and leave it there.