First of all, everyone should really read Bunel's earlier posts before just tagging him. He must have written the same explanation five times!
Let me try:
Statement 1:
2x - 2y =1
2*(x-y) = 1
x - y =0.5
Ok cool, but you can probably tell intuitively that a difference of 0.5 doesn't really help. X and Y could be 1 and 0.5 or 0.25 and -0.25.
So this is not really that helpful, however it was important to do this algebra because, often on DS questions, you need to see how the statements work together and simpler expressions are much easier to work with. So, always at least try and simplify stuff wherever possible as the GMAT really seems to reward that reflex.
Statement 2:
x/y > 1
This should be an immediate reaction: same sign. If you don't immediately think that, practice until you do.
Now, as Bunel mentioned, there are two approaches. Number picking and algebra. Whenever possible, I try to use algebra. It's really personal preference on a question like this, but I have a panic that goes off in my head where I am scared I am missing a potential extreme value. So I try to use algebra to avoid that feeling.
Whenever you have an equation and an inequality, you always want to substitute the equation into the inequality (the other way around is not really permitted).
Notice that it actually doesn't matter which value you isolate. Because you know x and y have the same sign, you are just trying to figure out the sign of either one of them.
equation 1: x = y + 0.5
equation 2: x/y > 1
Now you can clean up the second equation as Bunel did, or you can go straight for it.
(y + 0.5)/y > 1
y/y + 0.5/y >1
1 + 0.5/y > 1
0.5y > 0
So a positive number (0.5) multiplied by y is greater that 0. Ok so y has to be positive. And if y is positive......so is x (because statement 2 told us that).
(C)
Keep practicing everyone!