A shirt's price was reduced by 20% to $40. What was the original price of the shirt?

✓ Correct Answer: Option C

If the price was reduced by 20%, the current price of $40 represents 100% - 20% = 80% of the original price. Let P be the original price. So, 0.80P = $40. Dividing $40 by 0.80 gives P = $50.