Statement 1: The pitfall is to cancel the p's and say it is sufficient. However, if p is 0, then statement 1 still holds true while pq =0. Hence, insufficient.
Statement 2: The same pitfall holds true here as well. You can cancel the q's and say it is sufficient. But again, if q is 0, then statement 2 also holds true while pq =0. Hence, insufficient.
Together, we still have the same issue. pq = 1 and pq = 0 are still valid possibilities. Insufficient.
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Source: Beat The GMAT — Data Sufficiency |












