**Solution: Let us apply the IVY approach to solve the question. As we are dealing with percentage, then let the original price of the bag of spices be $100.**

Price after increment by 40%: (100 + 40)% of $100

=> (\(\frac{140}{100}\)) * $100 = $140

Price after second increment by 20%: (100 + 20)% of $140

=> (\(\frac{120}{100}\)) * $140 = $168

As the base price is $100, the final price would be 68% of the base price.

**After - A ; Before - B**

Since Percent change = \(\frac{A-B}{B}\cdot100\)(%) and $100 (Before) and $168 (After),

We get Percent change = \(\frac{168-100}{100}\cdot100\)(%) =\(\frac{68}{100}\cdot100\)(%) = 68%

**Therefore, E is the correct answer.**

Answer E