BTGmoderatorDC wrote:Ellen can purchase a certain computer at a local store at the price of p dollars and pay a 6 percent sales tax. Alternatively, Ellen can purchase the same computer from a catalog for a total of q dollars, including all taxes and shipping costs. Will it cost more for Ellen to purchase the computer from the local store than from the catalog?

(1) q - p < 50
(2) q = 1,150

OA C

Source: GMAT Prep

Price at the local store = p + 6% of p = 1.06p
Price from catalogue = q

We to ascertain whether 1.06p > q.

Let's take each statement one by one.

(1) q - p < 50

From q - p < 50, we can't establish that 1.06p > q.

(2) q = 1,150

We don't have the value of p to compare. Insufficient.

(1) and (2) together

From q - p < 50 and q = 1,150, we have p > 1,100

Thus, the minimum value of 1.06p = 1.06*1,100 = 1,166 > q (= 1,150).

Since the minimum value of p ensures that 1.06p > q, we are sure that it cost more for Ellen to purchase the computer from the local store than from the catalog. Sufficient.

The correct answer: [spoiler][/spoiler]

Hope this helps!

-Jay
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