A department store perceived a run on a lower priced garment and raised the price by 20% to keep stock available until another shipment arrived. Customers fumed and the department store manager allowed them to purchase the garments at 80% of the new price to save face. What was the difference in the new retail price and the price the customers were allowed to pay instead?
Choose the correct choice from the following:
A) 4.0 %  B) 5.0 %  C) 6.0 %  D) 7.0 %  E) 8.0 %

Rationale: quantity x rate = price 1 x 1 = 1 0.8 x 1.20 = 0.960 decrease in price = ( 0.040 / 1 ) ã — 100 = 4.0 % answer = option a
Answer: A