The price of a smartphone increased from $250 to $400 while the price of a smartphone app increased from $1 to $2. The relative price of smartphones in terms of smartphone apps
A) increased from 175 to 350.
B) decreased from 250 to 200.
C) increased from 0.003 to 0.05.
D) decreased from 0.35 to 0.2.

Question

Quizplus · Accepted Answer

The relative price of smartphones in terms of smartphone apps is calculated by dividing the price of the smartphone by the price of the app. Initially, it was 250/1 = 250. After the increase, it became 400/2 = 200. Therefore, the relative price decreased from 250 to 200.

The Price of a Smartphone Increased from $250 to $400