Question 721100
Hey,

So to solve this problem, we need to think of the price as a value, like x. So if the original price was x, then when the company reduced the price by 5%, the equation would look like this:

x - (x)(5%)  => x-.05x => x(1-.05) => x(.95) 

Now, if we want to get back to the original price, we need to get .95x back to 1x. So the difference between 1 and .95 is .05 which translates to 5%. So the retailed must increase the new price by 5% to sell the article at the old price. 

I hope this helps!