Raising the hook, or load by exactly 1 meter, will allow the length of the compressed material regain its original length, provided it wasn't deformed by the 5% compression.
Hooke's law
Hooke's law states that the force applied to an elastic material is directly proportional to the extension of the material provided that the elastic limit of the material is not exceeded.
When the length of the material is compressed by 5%, the material will regain its original size and shape when the applied load is removed, if the material was not deformed by the compression.
Thus, raising the hook, or load by exactly 1 meter, will allow the length of the compressed material regain its original length, provided it wasn't deformed by the 5% compression.
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