ExplanationCall the original price x. At the end of April, the total price was 1.4x. The price increase in April was 1.4x – 1x = 0.4x.

In May, the price increased an additional 30% over April’s final price of 1.4x. Thus, the price at the end of May was (1.3)(1.4)x, or 1.82x. The price increase in May was 1.82x – 1.4x = 0.42x.

Since x is positive, 0.42x (42% of x) is greater than 0.4x (40% of x). Quantity B is greater.

Alternatively, use smart numbers. If the original price was $100, April’s increase would result in a price of $140 and May’s increase would be (1.3)(140) = $182. Thus, April’s increase was $40 and May’s increase was $42. May’s increase will be greater no matter what number is used as the starting price (it is reasonable in GRE problems to assume that a price must be a positive number).

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Sandy

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