Last Updated on May 10, 2023
GMAT OFFICIAL GUIDE DS
Solution:
Out of three houses being sold, we must determine the asking price for the 2nd most expensive house. Let’s use variables of a, b, and c for the asking prices of the least expensive house, 2nd most expensive house, and most expensive house, respectively. Thus, we must determine the value of b.
Statement One Alone:
The difference between the greatest and the least asking price is $130,000.
Using the information in statement one we can create the following equation:
c – a = 130,000
The information in statement one is not sufficient to answer the question. We can eliminate answer choices A and D.
Statement Two Alone:
The difference between the two greater asking prices is $85,000.
Using the information in statement one, we can create the following equation:
c – b = 85,000
The information in statement two is not sufficient to answer the question. We can eliminate answer choice B.
Statements One and Two Together:
Using the information in statements one and two, we have the following two equations:
c – a = 130,000 and c – b = 85,000
We can subtract the two equations eliminate the variable c and obtain: b – a = 45,000. However, without knowing the value of a, we do not have enough information to determine the value of b.
Answer: E
