A4. The price of the product is first reduced by $30 \%$, and then increased by $40 \%$. Is the new price after the increase higher or lower than the original price before the reduction?
(A) It is impossible to determine.
(B) The new price is higher than the original price.
(C) The new price is lower than the original price.
(D) The new price is equal to the original price.
(E) It depends on the original price.
A4. Let's denote the initial price of the product by $x$. The price of the product after a $30 \%$ reduction is $0.7 x$, and after a $40 \%$ increase, it is $0.7 x + 0.4 \cdot 0.7 x = 0.98 x$. The new price is $2 \%$ lower than the initial price.