Concept: The question tests on the application of equations in a DS format.


We are asked if x+1/y+1 > x/y  or  if y(x+1) > x(y+1)   [On cross Multiplying]

Or x y +y > x y +x

Or  if y> x?

Using statement (1) we have 0<x<y and hence the answer we are receiving is a NO for the rephrased question. Hence sufficient to answer. 

St (2) informs that x y >   0 hence both x and y could be positive or both negative.

However we are not aware   of their values to decide if y>x or not. Hence   Insufficient. 

Thus   option (A).