The price of fuel may increase due to demand and decrease due to overproduction. Marco is studying the change in the price of two types of fuel. A and B. over time.
The price in dollars of fuel A after x months is represented by the function below.
10 = 2.961.04)
Part A: is the price of the increasing or decreasing and by what percentage per month? Justify your answer. (5 points)
Part 8: The table below shows the price 9m) in dollars of fuels afer m months
64
m (number of months) 1
3
sim) (price in dollars) 3.04 3.22 3.41 3.61
Which ope of fuel recorded a greater percentage change in pace over the previous month? Justity your answer. (5 points)

Answer:

A. Increasing by 4%.

Step-by-step explanation:

Answer:

A) The price of product A is increasing by 3% per year.

(B) The product A recorded a greater percentage change in price over the previous year.

Step-by-step explanation:

(A)

The function representing the price, in dollars, of product A after x years is:

FA(x)=0.69*(1.03)x

The function  FA(x)can be written as:

FA(x)=0.69*1+(0.03)x

The function FA(x) is similar to the exponential growth function, y=a(1+r)x .

Here r is the growth rate.

Thus, it can be said that the price of product A is increasing by 3% per year.

(B)

Consider the data of product B for the year 3 and 4.

The price of product B for year 3 and 4 are 10,303.01 and 10,406.04.

Compute the percent price change from year 3 to 4 as follows:

10406.04-10303.01/10303.01*100

which is 0.999%

~1%

The price of product B is increasing by 1% per year.

Thus, the product A recorded a greater percentage change in price over the previous year.

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