If a certain city is losing 12 percent of its daily water supply each

I also vote for C. It really kinda tough and tricky question but not much

Option 1 - Not sufficient. No info about cost
Daily Supply = 350 gallons
Daily Water Lost = (.12)350 = 42 gallons
Option 2 - Not sufficient. We don't know how much days' supply sums up to this. Weekly? Monthly?
Cost for 12000 gallons = $2
Cost for 1 gallon = $(1/6000)

Together
Total loss = Amount lost * Cost of each gallon
= 42 * 1/6000
= .007 $ per day

I think the right amount is 42 million gallons instead of 42 gallons?

OFFICIAL GMAT EXPLANATION

In order to solve this problem, the cost of the water and the number of gallons in the daily water supply must be known. Statement (1) gives the daily water supply, which is not sufficient by itself, and statement (2) gives the cost of water, which also is not sufficient by itself. Thus, the answer must be C or E. From both statements together, it can be concluded that the dollar cost for the water lost is (0.12(350,000,000) x $2)/12,000. The best answer is C.

Imagine yourself in the shoes of a mayor of a city, facing a critical dilemma: water pipe breakages are causing your city to lose a significant 12 percent of its daily water supply. When facing this challenge head-on, your task is clear: determine the cost in dollars per day of this loss.

Let's embark on this journey together, step by step.

Statement (1) reveals a fundamental detail: the city's daily water supply amounts to the considerable figure of 350 million gallons. This gives us an idea of the amount of water lost each day, but can we deduce the cost without knowing the unit price?

Enter Statement (2), which reveals that the city incurs a cost of $2 for every 12,000 gallons of water lost. This crucial piece of information sheds light on the price per unit, but can we determine the total cost without knowing the daily amount?

Now, let's weave these threads together. By harmonizing both statements, we possess the complete arsenal necessary to decipher the code. Armed with the knowledge of both the daily amount lost and the cost per unit, we can confidently calculate the total daily cost for the city.

As we navigate through the options, it becomes evident that the answer lies in the fusion of both statements. Individually they may seem inadequate, but together they form a formidable partnership that provides us with the necessary information to unravel the mystery.

So the correct answer is C.

Thus, Claudio Hurtado invites you, as we navigate through this problem, let us harness the power of collaboration and consider every angle with precision. With a strategic mindset and unwavering determination, we will emerge victorious, ready to conquer any challenge that the GMAT presents to us.­