A store reduces the price of a shirt by 20%. To restore the shirt to its original price, by what percentage must the reduced price be increased?

✓ Correct Answer: Option B

Let the original price be P. The reduced price is 0.8P. To get back to P, we need an increase of 0.2P. The percentage increase from the reduced price is (0.2P / 0.8P) * 100% = (1/4) * 100% = 25%.