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
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?
- Decreasing exponential
- Decreasing linear
- Increasing exponential
- Increasing linear
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.