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For x gt 0, the function g is defined as follows: \(\mathrm{g(x)}\) equals the total cost when a 15% tax...

GMAT Problem-Solving and Data Analysis : (PS_DA) Questions

Source: Prism
Problem-Solving and Data Analysis
Two-variable data: models and scatterplots
HARD
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Notes
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For \(\mathrm{x \gt 0}\), the function g is defined as follows:

\(\mathrm{g(x)}\) equals the total cost when a 15% tax is added to the base price \(\mathrm{x}\).

Which of the following could describe this function?

  1. Decreasing exponential
  2. Decreasing linear
  3. Increasing exponential
  4. Increasing linear
A
Decreasing exponential
B
Decreasing linear
C
Increasing exponential
D
Increasing linear
Solution

1. TRANSLATE the problem information

  • Given information:
    • g(x) = total cost when 15% tax is added to base price x
    • We need to determine if this function is increasing/decreasing and linear/exponential
  • What this tells us: We need to write g(x) as a mathematical expression first

2. TRANSLATE the tax calculation into mathematics

  • Base price: x
  • Tax amount: \(15\% \text{ of } \mathrm{x} = 0.15\mathrm{x}\)
  • Total cost: base price + tax = \(\mathrm{x} + 0.15\mathrm{x} = 1.15\mathrm{x}\)

Therefore: \(\mathrm{g(x)} = 1.15\mathrm{x}\)

3. INFER the function type

  • The function \(\mathrm{g(x)} = 1.15\mathrm{x}\) is in the form \(\mathrm{mx} + \mathrm{b}\) where:
    • \(\mathrm{m} = 1.15\) (coefficient)
    • \(\mathrm{b} = 0\) (y-intercept)
  • This makes it a linear function
  • Exponential functions have x in the exponent (like \(2^\mathrm{x}\)), not as the base

4. INFER whether increasing or decreasing

  • Since the coefficient \(1.15 \gt 0\), when x increases, g(x) also increases
  • This makes the function increasing

Answer: D (Increasing linear)




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak INFER reasoning about "increasing" vs "decreasing": Students think about tax from a consumer perspective - "tax is bad, so the function should be decreasing" or "tax reduces my purchasing power." However, mathematically, as the base price x gets larger, the total cost g(x) also gets larger, making it an increasing function.

This may lead them to select Choice B (Decreasing linear)

Second Most Common Error:

Poor TRANSLATE execution: Students might incorrectly set up the tax calculation, perhaps writing \(\mathrm{g(x)} = \mathrm{x} - 0.15\mathrm{x}\) (subtracting tax instead of adding) or \(\mathrm{g(x)} = 0.15\mathrm{x}\) (forgetting to include the base price).

This leads to confusion about whether the function is increasing or decreasing and causes guessing.

The Bottom Line:

This problem tests whether students can separate mathematical behavior from real-world intuition. While tax feels "negative" from a spending perspective, the mathematical function describing total cost still increases as base price increases.

Answer Choices Explained
A
Decreasing exponential
B
Decreasing linear
C
Increasing exponential
D
Increasing linear
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