Final answer:
The average price of the type of smartphone in 2013 can be found by calculating the decrease from 2012 and subtracting it from the price in 2012. The average price in 2013 was $338.84.
Step-by-step explanation:
To determine the average price of the type of smartphone in 2013, we can calculate the decrease from 2012 and subtract it from the price in 2012. The decrease of 114% means the price decreased by 100% + 14%. We can find the amount of the decrease by multiplying the price in 2012 by 14%. 14% of $394 is $55.16. Therefore, the average price of that type of smartphone in 2013 would be $394 - $55.16 = $338.84.