A store increased the price of an item by 20% and then decreased the new price by 25%. What is the net percentage change in the item's original price?

✓ Correct Answer: Option B

Let the original price be P. Increased by 20%: 1.20P. Decreased by 25%: (1.20P) * 0.75 = 0.90P. The net change is P - 0.90P = 0.10P, which is a 10% decrease.