Final answer:
After a 30% decrease, the bed's price goes down from $200 to $140. Then, a 20% markup raises the price by $28, making the new price $168. Option (b) is the correct answer.
Step-by-step explanation:
A furniture store has a bed that costs $200. It first decreased the price by 30%, which is a decrease of $200 \times 0.30 = $60. So, the new price after the decrease is $200 - $60 = $140.
Then, the store marked up the price by 20%. The markup on the discounted price is $140 \times 0.20 = $28. So, the new price after the markup is $140 + $28 = $168.
Therefore, the new price of the bed after a 30% decrease followed by a 20% increase is $168, which corresponds to option (b).