A crowd gathered outside the electronics store.  The window display was filled with radios, TVs, computers and other electronic devices. The big sign in the window said, “Sale! 10% off.”

“Not bad,” declared one person in the crowd. “Everything is discounted 10%.”

“Yes,” said someone else, “but I came by here last week and they had just raised the prices by 10%.  So there’s really no sale. We’re back where we started.”

“No, there really is a sale,” noted a third member of the group. “The final price is a bit lower than it was before the prices were raised.”

Who is right?

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