Last visit was: 19 Nov 2025, 15:58 It is currently 19 Nov 2025, 15:58
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
Orange08
User avatar
Joined: 25 Jul 2010
Last visit: 24 Oct 2010
Posts: 75
Own Kudos:
3,794
 [189]
Given Kudos: 29
Posts: 75
Kudos: 3,794
 [189]
Leo can buy a certain computer for p1 dollars in State A, where the sa 05 Sep 2010, 06:58
19
Kudos
Add Kudos
170
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

55% (hard)

Question Stats:

63% (02:02) correct 37% (01:48) wrong based on 3253 sessions

History

Date
Time
Result
Not Attempted Yet
Leo can buy a certain computer for \(p_1\) dollars in State A, where the sales tax is \(t_1\) percent, or he can buy the same computer for \(p_2\) dollars in State B, where the sales tax is \(t_2\) percent. Is the total cost of the computer greater in State A than in State B?


(1) \(t_1 > t_2\)

(2) \(p_1t_1 > p_2t_2\)
ShowHide Answer
Official Answer
E
Most Helpful Reply
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
 [29]
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
 [29]
Leo can buy a certain computer for p1 dollars in State A, where the sa 05 Sep 2010, 07:54
12
Kudos
Add Kudos
16
Bookmarks
Bookmark this Post
Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?

(1) t1 > t2
(2) p1t1 > p2t2
Show more
You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
avatar
sarathy
avatar
Joined: 07 Jun 2009
Last visit: 14 Apr 2011
Posts: 17
Own Kudos:
41
 [25]
Given Kudos: 4
Posts: 17
Kudos: 41
 [25]
Leo can buy a certain computer for p1 dollars in State A, where the sa 05 Sep 2010, 09:22
18
Kudos
Add Kudos
7
Bookmarks
Bookmark this Post
i always find it better to replace all the t1, p1, blah blah with easy-on-the-eyes variables
e.g. replace p1,p2,t1,t2 with a,b,c,d respectively
Question is total price greater in State A --> is ac+a > bd+b
--> a(c+1) > b(d+1) ?

Quote:
(1) c> d
Show more
we don't know anything about a and b --> insufficient

Quote:
(2) ac > bd
Show more
all we know is that ac > bd ...again, we don't know anything about a,b,c,d individually--> insufficient

Quote:
(1) & (2) combined
Show more
again, we don't have any info about a and b --> Both statements together are also insufficient

-->
Show Spoiler
E
General Discussion
User avatar
gurpreetsingh
User avatar
Joined: 12 Oct 2009
Last visit: 15 Jun 2019
Posts: 2,272
Own Kudos:
3,915
 [8]
Given Kudos: 235
Status:<strong>Nothing comes easy: neither do I want.</strong>
Location: Malaysia
Concentration: Technology, Entrepreneurship
Schools: ISB '15 (M)
GMAT 1: 670 Q49 V31
GMAT 2: 710 Q50 V35
Products:
My Reviews
Schools: ISB '15 (M)
GMAT 2: 710 Q50 V35
Posts: 2,272
Kudos: 3,915
 [8]
Leo can buy a certain computer for p1 dollars in State A, where the sa 21 Oct 2010, 10:29
8
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel don't you think the question is ambiguous?

it does not clearly mention that the overall p1 includes the tax or not. We can not assume whether he can buy inclusive of tax or exclusive. What do you think.

In either way the answer will be E, but I was little confused before starting the question.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
 [4]
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
 [4]
Leo can buy a certain computer for p1 dollars in State A, where the sa 21 Oct 2010, 16:27
3
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
gurpreetsingh
Bunuel don't you think the question is ambiguous?

it does not clearly mention that the overall p1 includes the tax or not. We can not assume whether he can buy inclusive of tax or exclusive. What do you think.

In either way the answer will be E, but I was little confused before starting the question.
Show more

Yes, the question is indeed ambiguous (at least for me too). Though you are also right in saying that it doesn't really matters and either way the answer is E.
avatar
dc1509
avatar
Joined: 07 Aug 2012
Last visit: 13 Jun 2013
Posts: 22
Own Kudos:
72
 [1]
Given Kudos: 3
Location: United States
Concentration: Finance, Strategy
Schools: Cox '15 (A) Georgia Tech '15 (D) Madison '15 (M) Olin '15 (A) Jindal '15 (A)
GMAT 1: 710 Q50 V35
GPA: 3.7
WE:Consulting (Insurance)
Schools: Cox '15 (A) Georgia Tech '15 (D) Madison '15 (M) Olin '15 (A) Jindal '15 (A)
GMAT 1: 710 Q50 V35
Posts: 22
Kudos: 72
 [1]
Leo can buy a certain computer for p1 dollars in State A, where the sa 17 Sep 2012, 21:18
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
It is clear that 1 or 2 individually cannot answer.

Both 1 and 2 combined, we have from 2) that p1t1 > p2t2 and from 1) we have t1 > t2, which means that p1 >= p2. Hence p1 + (p1t1/100) > p2 + (p2t2/100) can be determined. This is my understanding. Please let me know if it is otherwise.
User avatar
Capricorn369
User avatar
Joined: 11 May 2011
Last visit: 06 May 2019
Posts: 233
Own Kudos:
225
 [4]
Given Kudos: 84
Schools: Wharton Exec '21 (WL) Berkeley EMBA"20 (A)
GMAT 1: 680 Q49 V30
Posts: 233
Kudos: 225
 [4]
Leo can buy a certain computer for p1 dollars in State A, where the sa 17 Sep 2012, 22:29
4
Kudos
Add Kudos
Bookmarks
Bookmark this Post
dineesha
It is clear that 1 or 2 individually cannot answer.

Both 1 and 2 combined, we have from 2) that p1t1 > p2t2 and from 1) we have t1 > t2, which means that p1 >= p2. Hence p1 + (p1t1/100) > p2 + (p2t2/100) can be determined. This is my understanding. Please let me know if it is otherwise.
Show more

p1 >= p2 - is not a correct assumption.

Consider Case1 - (t1, t2) = (100, 10) & (p1, p2 ) = (3,2)
Here, t1 > t2 and p1t1 > p2t2 and p1 > p2

Consider Case2 - (t1, t2) = (100, 10) & (p1, p2 ) = (2,5)
Here as well, t1 > t2 and p1t1 > p2t2 but p1 < p2

Hope it helps! Cheers!
P.S. - Always try to substitute few values and test in these kind of scenario based questions.
User avatar
PiyushK
User avatar
Joined: 22 Mar 2013
Last visit: 31 Aug 2025
Posts: 598
Own Kudos:
4,978
 [1]
Given Kudos: 235
Status:Everyone is a leader. Just stop listening to others.
Location: India
GPA: 3.51
WE:Information Technology (Computer Software)
Products:
My Reviews
Posts: 598
Kudos: 4,978
 [1]
Leo can buy a certain computer for p1 dollars in State A, where the sa 14 Apr 2014, 08:45
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
\(p1 = c1 + \frac{t1}{100}*c1\) => \(t1 = \frac{100(p1 - c1 )}{c1}\)

\(p2 = c2 + \frac{t2}{100}*c2\) => \(t2 = \frac{100(p2 - c2 )}{c2}\)

\(1) t1 > t2\)

\(\frac{100(p1 - c1 )}{c1} > \frac{100(p2 - c2 )}{c2}\) => \(\frac{p1}{c1} > \frac{p2}{c2}\)

Not sufficient to tell p1 > p2.

\(1) p1t1 > p2t2\)

\(p1*\frac{100(p1 - c1 )}{c1} > p2*\frac{100(p2 - c2 )}{c2}\) => \(\frac{p1^2}{c1} > \frac{p2^2}{c2}\)

Not sufficient to tell p1 > p2.

As option 2 also includes option 1; both options together are not sufficient.

Ans: E
User avatar
Probus
User avatar
Joined: 10 Apr 2018
Last visit: 22 May 2020
Posts: 180
Own Kudos:
530
 [2]
Given Kudos: 115
Location: United States (NC)
Posts: 180
Kudos: 530
 [2]
Leo can buy a certain computer for p1 dollars in State A, where the sa 11 Sep 2018, 16:21
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi ,

here are my two cents for this question

In county A let \(p_1\) be price before tax, \(t_1\)be the tax
then total price in county A is say M=\(p_1\)+\(p_1t_1\)
In county B let \(p_2\) be price before tax, \(t_2\)be the tax
then total price in county B is say N= \(p_2\)+\(p_2t_2\)

We are0 asked if M>N
To answer this question we need to know that tax rates at each county, and base price at each county / or we need to know the ratio of prices and ratio of taxes to come to conclusion about the comparison of prices.

Now Stmt 1:\(t_1\)> \(t_2\). OK we can have two case results from this.

Case a:\(p_1\)>\(p_2\) Say \(p_1\)= 150, \(p_2=100,\)\(t_1=20\), \(t_2=10\), then we have
\(t_1\)> \(t_2\)
M= 150+30 & N=100+10. (Here we have\(p_1t_1\)> \(p_2t_2\), or 30>10)
So M=180,N=110
We have from this that M>N

Case b:\(p_1\)<\(p_2\) Say \(p_1\)= 100, \(p_2=150,\)\(t_1=20\), \(t_2=10\), then we have
\(t_1\)> \(t_2\)
M= 100+20 & N=150+15. (Here we have\(p_1t_1\)> \(p_2t_2\), or 20>15)
So M=120,N=165
We have from this that M<N

So Stm1 Insufficient

Now Stmt 2: \(p_1t_1\)> \(p_2t_2\). We can have several cases from this , however if we refer our stmt 1 (the highlighted portion ) we already have \(p_1t_1\)> \(p_2t_2\). and we did get different answers on each case.

So Stm2 Insufficient
Other cases except those not discussed in statement 1 can be
Say \(p_1=p_2\) & \(t_1\)> \(t_2\)

Say Say \(p_1=p_2\) =150 and \(t_1\)= 20 and \(t_2\)=10

we will have M= 150+30 &N= 150+10 so 180>160or M>N

Say \(p_1>p_2\) & \(t_1\)= \(t_2\) Say \(t_1\)= \(t_2\) = 20 Say\(p_1\)= 150 and \(p_2\)= 100,then we have
M= 150+30
N=100+20
we have M>N



Now if we combine both statements , there is no new information, Hence E

Probus
avatar
TheUltimateWinner
avatar
Schools: Harvard '24 Judge '23 LBS '24 McCombs '24 Mendoza Tepper '24 Ross '24 Cox Marshall '24 Fisher Kelley '24 Jones McDonough '24 Owen '24 Terry BU Simon '24 Katz GWU Mason Babson Gabelli Foster '24 Goizueta '24 Scheller Stern '23 CBS '23 Booth '23 Haas '25 Wharton '25 Stanford '26 Johnson'23 Fuqua '23 Kellogg '23 Kenan-Flagler'23 INSEAD Aug 22 intake Olin '23 Said '23 Sloan '23 Carey Arizona "22 Yale '23 UC Davis Madison '23 Anderson '23 Carroll Carlson '23 Darden '23
Posts: 2,489
Kudos: 2,387
Leo can buy a certain computer for p1 dollars in State A, where the sa 22 Feb 2020, 14:54
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.
You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
Show more
Hello Bunuel
Is there any chance the tax to be 0% in B (in this regard)?
Thanks__
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
Leo can buy a certain computer for p1 dollars in State A, where the sa 23 Feb 2020, 03:59
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Asad
Bunuel
Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.

You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
Hello Bunuel
Is there any chance the tax to be 0% in B (in this regard)?
Thanks__
Show more

Why not? Nothing in the question restricts that and so we can have some tax heaven state.
User avatar
Poojita
User avatar
Joined: 30 Dec 2019
Last visit: 02 Oct 2022
Posts: 70
Own Kudos:
82
Given Kudos: 654
Location: India
Schools: LBS MFA "23
Products:
My Reviews
Schools: LBS MFA "23
Posts: 70
Kudos: 82
Leo can buy a certain computer for p1 dollars in State A, where the sa 20 Jul 2021, 07:28
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.

You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
Show more


\(p_1*t_1>p_2*t_2\) --> amount of tax in $ is more in A than in B.

I DIDNT GET THIS PART. How can we conclude that? it maybe because the base price in state A is much higher than in state B
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
 [2]
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
 [2]
Leo can buy a certain computer for p1 dollars in State A, where the sa 20 Jul 2021, 09:17
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Poojita
Bunuel
Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.

You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.


\(p_1*t_1>p_2*t_2\) --> amount of tax in $ is more in A than in B.

I DIDNT GET THIS PART. How can we conclude that? it maybe because the base price in state A is much higher than in state B
Show more

A price multiples by the sales tax is the amount of the tax. For example, if p1 = $100 and t1 = 10%, then p1*t1=$10 is the amount of the tax to be paid in dollars. So, \(p_1*t_1>p_2*t_2\) simply means that the amount of tax in $ is more in A than in B.
User avatar
parampreet1997
User avatar
Joined: 15 Nov 2020
Last visit: 16 Mar 2025
Posts: 28
Own Kudos:
4
Given Kudos: 9
Schools: Rotman '25 (WL)
Schools: Rotman '25 (WL)
Posts: 28
Kudos: 4
Leo can buy a certain computer for p1 dollars in State A, where the sa 29 May 2024, 07:46
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel

Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.
You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
Show more
­
Bunuel -

I have 2 things here:-
1. Why are we assuming tax is over the price? According to me, price should be inclusive of tax since question mentions that that "Leo can buy at P1", i.e. he would have to pay P1 cash to buy the computer.
2. Also, why are we assuming base price (i.e. exclusing sales tax) of the two computers separate in two states? The question mentions that the price of the same computer in other state. So, according to me, since the computer model is same, the base price in both states is same and the sales tax rates are different leading to differen overall price P1 and P2.

When I take these two conditions, my answer comes out to be D.

I think the question is ambiguous.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
Leo can buy a certain computer for p1 dollars in State A, where the sa 29 May 2024, 08:12
Kudos
Add Kudos
Bookmarks
Bookmark this Post
parampreet1997

Bunuel

Orange08
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent,or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
10
(1) t1 > t2
(2) p1t1 > p2t2


I chose B. However, OA is different. please explain.
You can solve this question algebraically, but number plugging is easier here.

Total cost = p*(1 + t/100).

(1) \(t_1>t_2\)

No information about the prices. Not sufficient.

(2) \(p_1*t_1>p_2*t_2\)

The dollar amount of tax is higher in A than in B. But if \(t_1 > 0%\) and \(t_2 = 0%\), then this holds for any positive \(p_1\) and \(p_2\). Still, this does not guarantee which total cost is higher. Not sufficient.

(1)+(2) Again, if \(t_1 = 10% > t_2 = 0%\) (statement 1), then \(p_1 * t_1 > p_2 * t_2 = 0\) (statement 2). But even with both statements, we cannot establish the relationship between the total costs in State A and State B. For example, if \(p_1 = p_2\), the total cost in A would be higher than in B, since B’s cost would be just \(p_2\) (as \(t_2 = 0%\)) and A’s cost would be \(p_1 * 1.1 = p_2 * 1.1\). However, if \(p_1 = 1\) and \(p_2 = 100\), the total cost in A would be lower than in B, since B’s cost would be \(p_2 = 100\) and A’s cost would be \(p_1 * 1.1 = 1.1\). Not sufficient.

Answer: E.
­
Bunuel -

I have 2 things here:-
1. Why are we assuming tax is over the price? According to me, price should be inclusive of tax since question mentions that that "Leo can buy at P1", i.e. he would have to pay P1 cash to buy the computer.
2. Also, why are we assuming base price (i.e. exclusing sales tax) of the two computers separate in two states? The question mentions that the price of the same computer in other state. So, according to me, since the computer model is same, the base price in both states is same and the sales tax rates are different leading to differen overall price P1 and P2.

When I take these two conditions, my answer comes out to be D.

I think the question is ambiguous.
Show more
­
1. That's not how sales tax works. It's added to the price. For example, if the price is $100 and the sales tax is 10%, the customer pays $110.

2. Prices can differ between two shops next to each other, so they can obviously differ across state borders.

3. Note that this is an official question, so its wording is as precise as possible.­
User avatar
RudraaDS
User avatar
Joined: 27 Sep 2024
Last visit: 19 Aug 2025
Posts: 1
Given Kudos: 1
Posts: 1
Kudos: 0
Leo can buy a certain computer for p1 dollars in State A, where the sa 21 Apr 2025, 07:03
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Orange08
Leo can buy a certain computer for \(p_1\) dollars in State A, where the sales tax is \(t_1\) percent, or he can buy the same computer for \(p_2\) dollars in State B, where the sales tax is \(t_2\) percent. Is the total cost of the computer greater in State A than in State B?


(1) \(t_1 > t_2\)

(2) \(p_1t_1 > p_2t_2\)
Show more
in the question, arent we talking about same computer in different states. Hence the price before taxes could be same in both states and the tax is the only part that makes the difference. Hence both statements can answer and hence D
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
778,368
 [1]
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
 [1]
Leo can buy a certain computer for p1 dollars in State A, where the sa 21 Apr 2025, 07:56
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
RudraaDS
Orange08
Leo can buy a certain computer for \(p_1\) dollars in State A, where the sales tax is \(t_1\) percent, or he can buy the same computer for \(p_2\) dollars in State B, where the sales tax is \(t_2\) percent. Is the total cost of the computer greater in State A than in State B?


(1) \(t_1 > t_2\)

(2) \(p_1t_1 > p_2t_2\)
in the question, arent we talking about same computer in different states. Hence the price before taxes could be same in both states and the tax is the only part that makes the difference. Hence both statements can answer and hence D
Show more
The computer is the same, but the question does not say the price before tax is the same in both states. It's common for the same item to have different base prices in different locations.

That’s why we cannot assume p1 = p2, and without knowing both base prices and tax rates, we cannot determine which total cost is greater.

So, your assumption that the base prices must be the same is not supported by the question and that’s exactly why E is correct, not D.
Moderators:
Bunuel
Math Expert
105390 posts
kingbucky
496 posts