Got a Question ?
        Ask your queries directly to ISB Admission Cell

                                                                                                                                                                                                                            Ask here
GMAT coaching :
"Early Morning " batches for "GMAT 760"are going to be started from 7th December, 2008 at Pune, Hyderabad and New Delhi centers. Want to join ? Click here now !          Aiming for ISB Hyderabad ?, Your last chance to book your seat in the ISB Class 2010. Call Now on GMAT Helpline: 09899004123
Home | Answer | Forum | Blog | Wiki | Online Tutoring | GMAT Coaching | AWA LiveErator  | Essay Editing Admission Counseling  | Correspondance Course  | Contact Us

GMAT Question of the Day : Critical Reasoning

If the price of a magazine is to be doubled, by what percent will the number of magazines sold decrease?
(1) The current price of the magazine is $1.00.
(2) For every $0.25 of increase in price, the number of magazines sold will decrease by 10 percent of the number sold at the current price.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

Written by Take GMAT Team on August 27th, 2008 with 33 comments.
Read more articles on GMAT Critical Reasoning and GMAT Question of the Day.

Related articles

33 comments

Read the comments left by other users below, or:

Get your own gravatar by visiting gravatar.com V Pat
#1. November 17th, 2006, at 2:12 AM.

C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

Get your own gravatar by visiting gravatar.com Nrip Nihalani
#2. November 17th, 2006, at 8:04 PM.

C

Get your own gravatar by visiting gravatar.com bluesclues9
#3. November 17th, 2006, at 10:17 PM.

C

Get your own gravatar by visiting gravatar.com GOPI
#4. November 20th, 2006, at 9:24 PM.

C

Get your own gravatar by visiting gravatar.com prakashchandra
#5. January 29th, 2007, at 8:14 AM.

C

Get your own gravatar by visiting gravatar.com Renegade
#6. January 29th, 2007, at 10:22 AM.

C.BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

Get your own gravatar by visiting gravatar.com PrT
#7. January 29th, 2007, at 6:30 PM.

C

Get your own gravatar by visiting gravatar.com Valmik Desai
#8. January 29th, 2007, at 7:35 PM.

c

Get your own gravatar by visiting gravatar.com Jaimin
#9. January 29th, 2007, at 9:46 PM.

Its C…..

Get your own gravatar by visiting gravatar.com akanksha
#10. March 19th, 2007, at 5:06 PM.

“C” is the correct option….

Get your own gravatar by visiting gravatar.com saraswathi
#11. March 21st, 2007, at 12:04 PM.

C

Get your own gravatar by visiting gravatar.com shyam
#12. April 8th, 2007, at 7:45 PM.

C

Get your own gravatar by visiting gravatar.com AP
#13. April 13th, 2007, at 8:41 PM.

C

Get your own gravatar by visiting gravatar.com sachin
#14. March 24th, 2008, at 7:59 AM.

c

Get your own gravatar by visiting gravatar.com Reetu Singh
#15. March 24th, 2008, at 11:34 AM.

C

Get your own gravatar by visiting gravatar.com Aviral
#16. March 25th, 2008, at 11:58 AM.

c

Get your own gravatar by visiting gravatar.com Chinu
#17. March 28th, 2008, at 10:46 PM.

Why NOT B
Lets say for x Rs : y Books are sold
Then 1.25x Rs : .9y books wil be sold

In this we didn’t used Statement 1

Get your own gravatar by visiting gravatar.com Pushpa
#18. August 27th, 2008, at 10:07 AM.

Hi Chinu,

but with B alone we cant find out % decrease of magazine sale when the price is doubled.

I think it should be C.

Get your own gravatar by visiting gravatar.com deepak
#19. August 27th, 2008, at 12:22 PM.

I tink the ans is C

Get your own gravatar by visiting gravatar.com Laura
#20. August 27th, 2008, at 9:44 PM.

C

Get your own gravatar by visiting gravatar.com jaspreet
#21. August 27th, 2008, at 9:49 PM.

C

Get your own gravatar by visiting gravatar.com kapil
#22. August 27th, 2008, at 11:31 PM.

C

Get your own gravatar by visiting gravatar.com shilpa
#23. August 28th, 2008, at 12:28 AM.

C

Get your own gravatar by visiting gravatar.com ashwin04
#24. August 28th, 2008, at 11:19 AM.

The answer is B.

Since in the question percentage is been asked not actual number of magazines decrease .

Suppose X price y copies got sold
now 2x price 4y/5 nmber of copies

suppose y is 100 and then 4y/5 is 80 ie 20 % decrease right .

there fore (100-80 )/100=20% decrease .
this doe not use A and does not even need it .

Get your own gravatar by visiting gravatar.com Immanuel Ashok
#25. August 28th, 2008, at 4:40 PM.

Yes the answer is B.

Statement 2 says that if the price increases by 25% the number of magazines sold will decrease by 10%.

Therefore if the price increases by 100% (i.e price is doubled) the no of magazines sold will decrease by 40%.

Therefore statement 2 alone is sufficient!

Get your own gravatar by visiting gravatar.com Immanuel Ashok
#26. August 28th, 2008, at 4:43 PM.

Sorry the answer is C and not B.

the price increase is not represented in %. Hence we need statement 1 as well.

Get your own gravatar by visiting gravatar.com indomitable18
#27. August 28th, 2008, at 8:20 PM.

can any body restate on ground zero basis

Get your own gravatar by visiting gravatar.com Basant
#28. August 29th, 2008, at 1:53 PM.

my ans is c

Get your own gravatar by visiting gravatar.com Deepak
#29. August 30th, 2008, at 12:05 PM.

C

Get your own gravatar by visiting gravatar.com Amar
#30. August 30th, 2008, at 12:47 PM.

C

gota hav both

Waz ur take team gmat ?

Get your own gravatar by visiting gravatar.com peeps
#31. August 30th, 2008, at 11:47 PM.

A,D are out, since (1) gives you no idea how the price relates to quantity demanded.

(2) is also insufficient by itself. To see this, look at the given case where the product is a dollar. then doubling we lose 40% quantity sold, since that is a 25 cent increase 4 times, where each time represents a 10 % loss in the original price. Now take it a step further. Assume the original price is now two dollars. If the price doubles, it is 4 dollars and then we lose 80% sold based on condition (2), i.e. the price goes up 8 quarters’ (.25) worth and each .25 increase still creates 10 % loss each time. So since 40 % does not equal 80 %, statement (2) is not sufficient and must be accompanied by statement (1) Thus the answer is C

Get your own gravatar by visiting gravatar.com utkarsh
#32. September 12th, 2008, at 3:10 PM.

c

Get your own gravatar by visiting gravatar.com Kuldeep Sharma
#33. November 12th, 2008, at 12:19 AM.

c

Leave your comment...

If you want to leave your comment on this article, simply fill out the next form:




You can use these XHTML tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> .

                           Memorize words for Reading Comprehension                    of GMAT
                 Come & see the miracle happening             through Win Over Words - "WOW" technique

                                               Memorize words by the Power of Understanding