Answer: volume is reduced by 221 cubic inches
Work Shown:
A = old volume (large volume)
A = length*width*height = 7*9*7 = 441 cubic inches
B = new volume (smaller volume)
B = length*width*height = 8*5*5 = 200 cubic inches
C = change in volume = amount volume is reduced
C = A - B = 441-200 = 221 cubic inches