Answer:
The area of the new parallelogram is (<em>bh</em> - 2<em>b</em> - h + 2).
Step-by-step explanation:
The area of a parallelogram is:

Let the original base be denoted by, <em>b</em> and the original height be denoted by, <em>h</em>.
It is provided that the height of the parallelogram is decreased by 1 inch and the base is decreased by 2 inches.
The new base and height are:
<em>b</em>₁ = <em>b</em> - 1
<em>h</em>₁ = <em>h</em> - 2
The new area of the parallelogram is given by:

Thus, the area of the new parallelogram is (<em>bh</em> - 2<em>b</em> - h + 2).