**Concept:** **The question tests on basics of of Percentage **

**Solution:**

Let the Original price = x

After an increase of 7%, the new price is 1.07x

After increasing by $40, the final price is 1.07x + 40... (1)

Also this final price is 15% greater than the original price = 1.15x .. (2)

Equating (1) and (2)

1.07x + 40 = 1.15x

.08x = 40

x = 4000/8 = $500

Option B