Tim can buy a certain computer for $800 at a local store, or he can buy the same computer for...
GMAT Data Sufficiency : (DS) Questions
Tim can buy a certain computer for $800 at a local store, or he can buy the same computer for $800 from a catalog. The sales tax charged by the store is \(\mathrm{s}\) percent and the sales tax charged by the catalog is \(\mathrm{c}\) percent. If \(\mathrm{s > c}\), how much more sales tax will Tim pay if he buys the computer at the store instead of from the catalog?
- \(\mathrm{s = 2c}\)
- \(\mathrm{s = c + 3}\)
Understanding the Question
We need to find the exact dollar difference in sales tax between buying an \(\$800\) computer at a store versus from a catalog.
Given Information
- Computer price at both locations: \(\$800\)
- Store sales tax rate: \(\mathrm{s\%}\)
- Catalog sales tax rate: \(\mathrm{c\%}\)
- Constraint: \(\mathrm{s} > \mathrm{c}\) (store tax is higher)
What We Need to Determine
Since we're comparing tax amounts on the same \(\$800\) purchase, the key insight is this: we need to determine if we can find a unique value for the tax difference in dollars.
For this value question to be sufficient, we must arrive at exactly one numerical answer.
Analyzing Statement 1
Statement 1 tells us: \(\mathrm{s} = 2\mathrm{c}\)
This means the store tax rate is exactly double the catalog tax rate. But here's the critical question: what ARE these actual rates?
Let's test with concrete examples:
- If catalog charges 5%, then store charges 10%
- Tax difference = \(\$800 \times (10\% - 5\%) = \$800 \times 5\% = \$40\)
- If catalog charges 10%, then store charges 20%
- Tax difference = \(\$800 \times (20\% - 10\%) = \$800 \times 10\% = \$80\)
Since different values of c lead to different tax differences, we cannot determine a unique answer.
Statement 1 is NOT sufficient.
This eliminates choices A and D.
Analyzing Statement 2
Now let's forget Statement 1 completely and analyze Statement 2 independently.
Statement 2 tells us: \(\mathrm{s} = \mathrm{c} + 3\)
This means the store tax rate is exactly 3 percentage points higher than the catalog tax rate.
Here's the elegant insight: When the base amount is fixed at \(\$800\), a fixed percentage point difference always yields the same dollar difference, regardless of the actual tax rates.
The tax difference = \(\$800 \times (\mathrm{s\%} - \mathrm{c\%}) = \$800 \times 3\% = \$24\)
To verify this works for any value of c:
- If c = 5% (making s = 8%): difference = \(\$800 \times 3\% = \$24\)
- If c = 10% (making s = 13%): difference = \(\$800 \times 3\% = \$24\)
The difference is always \(\$24\), no matter what c is.
Statement 2 is sufficient. [STOP - Sufficient!]
This eliminates choices C and E.
The Answer: B
Since Statement 2 alone gives us a unique value for the tax difference (\(\$24\)) while Statement 1 alone does not, the answer is B.
Answer Choice B: "Statement 2 alone is sufficient, but Statement 1 alone is not sufficient."