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).