Ellen

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 186
Joined: Sat Dec 24, 2016 12:38 am
Thanked: 5 times
Followed by:3 members

Ellen

by rsarashi » Fri Jul 28, 2017 8:59 am
Ellen can purchase a certain computer at a local store at the price of p dollars and pay a 6% 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=1150

OAC
Source: — Data Sufficiency |

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Fri Jul 28, 2017 9:42 am
rsarashi wrote:Ellen can purchase a certain computer at a local store at the price of p dollars and pay a 6% 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=1150
Statement 1: p > q-50
Case 1: q=1150, implying that p > 1100
Store cost = (more than 1100) + (6% of more than 1100) = (more than 1100) + (more than 66) = more than 1166.
In this case, the store cost is greater than the catalog cost.

Case 2: q=150, implying that p > 100
Store cost = (more than 100) + (6% of more than 100) = (more than 100) + (more than 6) = more than 106.
In this case, the store cost can be lower than the catalog cost.
INSUFFICIENT.

Statement 2:
No information about p.
INSUFFICIENT.

Statements combined:
Only Case 1 satisfies both statements.
In Case 1, the store cost is greater than the catalog cost, so the answer to the question stem is YES.
SUFFICIENT.

The correct answer is C.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10392
Joined: Sun Jun 23, 2013 6:38 pm
Location: Palo Alto, CA
Thanked: 2867 times
Followed by:511 members
GMAT Score:800

by [email protected] » Fri Jul 28, 2017 11:12 am
Hi rsarashi,

Certain types of DS questions will appear on Test Day to measure the thoroughness of your thinking.

The prompt tells us about two ways that Ellen could purchase a computer:
1) From a store - for $P + 6% tax
2) From a catalog - for a total price of $Q

We're asked if it will cost Ellen MORE to buy the computer from the store than from the catalog. In real simple terms, it's asking "Is 1.06(P) > Q?" This is a YES/NO question.

Fact 1: Q - P < 50

From this, we don't know if Q or P is bigger, but we can still TEST VALUES to prove the inconsistency....

IF...
Q = 50
P = 1
1.06(1) is NOT > 50. The answer to the question is NO.

IF....
Q = 50
P = 53
1.06(53) IS > 50. The answer to the question is YES.
Fact 1 is INSUFFICIENT.

Fact 2: Q = 1150

This tells us nothing about the value of P, so we cannot figure out the value of 1.06(P).
Fact 2 is INSUFFICIENT

Combined, we know....
Q - P < 50
Q = 1150

At this point, many Test Takers would assume that this was insufficient, without gathering ANY proof. It's always interesting when Quant questions include specific numbers - those numbers were CHOSEN for a reason. They are NOT by accident. So it's interesting that Q = 1150 EXACTLY. Maybe there's a reason....maybe there's a pattern here....

Substituting in the value of Q, we have...

1150 - P < 50
1100 < P

Now this provides a lower limit to what P can be, but we MUST factor in the 6% tax too....

At the 'low end', P = just over $1100. With a 6% tax, (.06)(1100) = $66, so 1.06(P), at the minimum = a little more than 1100 + 66 = $1166. Every other possible price for P is GREATER than this. By extension, EVERY possible value of 1.06(P) is greater than Q.
Combined, SUFFICIENT.

Final Answer: C

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image