The price of an MP3 music player increased from $50 to $70 while the price of a music download increased from $1 to $2. The relative price of an MP3 music player in terms of music downloads
A) increased from 0.04 to 0.05.
B) decreased from 50 to 35.
C) increased, but we need more information to know by how much.
D) decreased, but we need more information to know by how much.

Question

Quizplus · Accepted Answer

The relative price of the MP3 player in terms of music downloads is calculated by dividing the price of the MP3 player by the price of a music download. Initially, it was $50/$1 = 50 downloads. After the price change, it is $70/$2 = 35 downloads. Thus, the relative price decreased from 50 to 35.

The Price of an MP3 Music Player Increased from $50