Key concept: Data Sufficiency — testing whether variables cancel
The common trap here is assuming Statement (1) is sufficient because "we know the ratio of quantities." But the average price depends on both the quantity ratio AND the actual price of cotton socks, which is unknown. Let's be precise.
Setup: Let cotton price = c, woolen price = c + 3, woolen pairs = w, cotton pairs = k.
Average price = [w(c+3) + kc] / (w + k)
Step 1 — Statement (1): k = 3w
Substitute: [w(c+3) + 3wc] / 4w = [wc + 3w + 3wc] / 4w = c + 3/4
Average price = c + 0.75 — still depends on c.
INSUFFICIENT
Step 2 — Statement (2): Money spent on cotton = 2 × money spent on woolen
kc = 2w(c+3) → k = 2w(c+3)/c
Plugging into the average expression, after simplifying:
Average = c(c+3)/(c+2) — still depends on c.
INSUFFICIENT
Step 3 — Both together:
From (1): k = 3w
From (2): kc = 2w(c+3) → 3wc = 2w(c+3) → 3c = 2c + 6 → c = 6
So cotton = $6, woolen = $9, cotton pairs = 3w, woolen pairs = w.
Average = (w×9 + 3w×6) / (w + 3w) = (9w + 18w) / 4w = 27/4 = $6.75
SUFFICIENT
Answer: C
Takeaway: In DS word problems with a price difference between two items, a quantity ratio alone won't fix the average — you need a second equation that pins down the actual price.