The GMAT wants you to turn sentences into equations. Or in this case, two equations.
Let the price per pound of salad = p. We want to solve for p... though keep in mind that we ultimately want to find p + .20
Let the number of pounds = x
9 = px
and
9 = (p + .2)(x - .5)
Now, sometimes the quickest way to solve a problem is by "backsolving", i.e. plugging answer choices into the equation. If you give it a try, some high-scoring students might see what's going on, but it's not obvious in this case, so we'll switch gears and jump into the algebra.
Combine the two equations:
px = (p + .2)(x - .5)
Now, this question is maddening for a few reasons. The first is that it's easy to make simple mistakes under time pressure, especially since decimals are involved.
Let's re-write the right-hand side of the equation
px = px -.5p + .2x - .1
Simplify by subtracting px from both sides:
0 = -.5p +.2x -.1
re-arrange
0 = .2x - .5p -.1
To make life easier, let's get rid of decimals. Multiply both sides of the equation by 10
0 = 2x - 5p - 1
The GMAT now wants you to recognize that, in order to answer the question, we want to use this equation to isolate x, and then ultimately plug that into first equation, which was 9 = px
So first we'll solve for x:
0 = 2x - 5p - 1
5p + 1 = 2x
(5p +1)/2 = x
Now the second maddening part: if you plug that x value into the original equation, 9 = px, you have
9 = p * (5p +1)/2
"distribute" the p:
9 = (5p^2 + p)/2
18 = 5p^2 + p
To find p, set it all of this equal to zero, then factor (which is not necessarily easy to do under timed conditions, since we have a 5p^2 in our hands)
0 = 5p^2 + p - 18
0 = (5p - 9)(p + 2)
Since p cannot be a negative number, it can't be -2. So now we'll find the value for p when 5p - 9 = 0
p = 9/5 = 1.8
So the answer is $1.80, right? No! Always, always, always re-read a question before you submit an answer. The question wants us to find p + .20, which is $2.00
Answer E
Going back to the initial approach, which was backsolving, high-scoring students might have noticed that you don't want to plug the answer choices into the 9 = px equation, you want to plug them into the 9 = (p + .2)(x - .5) equation. If you plug $1.80 into that equation, you'll see that x - .5 = 4.5 pounds. Which means x in the 9 = px equation = 5 pounds, which means that, yes, p would have been $1.80. Which means the correct answer to the question (p + .20) is $2.00. Not so obvious in this case, but backsolving is a reasonable approach that you certainly want to keep in mind in the future.