\documentclass[a4paper,12pt]{article}

\usepackage{epsf}
\begin{document}

Here is the figure {\bf test.eps}:

\epsfxsize=2truein
\epsfbox{demos/test.eps}

Hmm.  That's too small.  How about this?

\epsfbox{demos/test.eps}

Well?

\end{document}