If a company's sales increase by the same amount each year, what type of growth is it experiencing?

If a company's sales increase by the same amount each year, what type of growth is it experiencing?

• A. Exponential growth
• B. Linear growth
• C. Quadratic growth
• D. Logarithmic growth

Answer: (B)

When a company's sales increase by the same amount each year, it is experiencing linear growth. This type of growth can be visualized as a straight line when represented on a graph, where the x-axis represents time (years) and the y-axis represents sales. In linear growth, the relationship between the time and the quantity increases at a constant rate. For example, if sales increase by $10,000 every year, the sales figures form a sequence of values that are evenly spaced apart on the graph. In contrast to linear growth, exponential growth would involve the sales increasing by a percentage of the sales amount, leading to larger increases over time, which creates a curve that accelerates upward. Quadratic growth would involve the sales increasing based on a degree-two polynomial function, resulting in a parabolic curve. Logarithmic growth is characterized by fast increases that slow down over time, leading to a graph that rises steeply initially but flattens out. Thus, the consistent increase in sales by the same amount each year distinctly characterizes linear growth, confirming that the answer is correct.

When a company's sales increase by the same amount each year, it is experiencing linear growth. This type of growth can be visualized as a straight line when represented on a graph, where the x-axis represents time (years) and the y-axis represents sales. In linear growth, the relationship between the time and the quantity increases at a constant rate. For example, if sales increase by $10,000 every year, the sales figures form a sequence of values that are evenly spaced apart on the graph.

In contrast to linear growth, exponential growth would involve the sales increasing by a percentage of the sales amount, leading to larger increases over time, which creates a curve that accelerates upward. Quadratic growth would involve the sales increasing based on a degree-two polynomial function, resulting in a parabolic curve. Logarithmic growth is characterized by fast increases that slow down over time, leading to a graph that rises steeply initially but flattens out.

Thus, the consistent increase in sales by the same amount each year distinctly characterizes linear growth, confirming that the answer is correct.