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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 [tex]\( f(x) \)[/tex], in dollars, of fuel A after [tex]\( x \)[/tex] months is represented by the function below:
[tex]\[ f(x) = 2.27(0.88)^x \][/tex]

Part A: Is the price of fuel A increasing or decreasing, and by what percentage per month? Justify your answer. (5 points)

Part B: The table below shows the price [tex]\( g(m) \)[/tex], in dollars, of fuel B after [tex]\( m \)[/tex] months:

[tex]\[
\begin{tabular}{|l|c|c|c|c|}
\hline
\text{m (number of months)} & 1 & 2 & 3 & 4 \\
\hline
\( g(m) \) \text{(price in dollars)} & 3.44 & 3.30 & 3.17 & 3.04 \\
\hline
\end{tabular}
\][/tex]

Which type of fuel recorded a greater percentage change in price over the previous month? Justify your answer. (5 points)


Sagot :

Sure, let's break down this problem step by step for each part:

### Part A

We need to determine whether the price of fuel A is increasing or decreasing and by what percentage per month.

The price of fuel A after [tex]\( x \)[/tex] months is given by the function:
[tex]\[ f(x) = 2.27(0.88)^x \][/tex]

1. Identify whether the price is increasing or decreasing:

The term [tex]\( (0.88)^x \)[/tex] indicates an exponential function. Since the base of the exponent is [tex]\( 0.88 \)[/tex] which is less than 1, the function represents exponential decay.

Therefore, the price of fuel A is decreasing.

2. Calculate the percentage decrease per month:

For an exponential decay situation of the form [tex]\( f(x) = a(b)^x \)[/tex], where [tex]\( 0 < b < 1 \)[/tex], the decay rate per period can be calculated as:

[tex]\[ \text{Decay rate per month} = (1 - b) \times 100 \% \][/tex]

Here, [tex]\( b = 0.88 \)[/tex]:

[tex]\[ \text{Decay rate per month} = (1 - 0.88) \times 100 \% = 0.12 \times 100 \% = 12 \% \][/tex]

So, the price of fuel A is decreasing by 12% per month.

### Part B

We have the prices for fuel B over 4 months given in a table:

[tex]\[ \begin{array}{|c|c|c|c|c|} \hline \text{m (number of months)} & 1 & 2 & 3 & 4 \\ \hline \text{g(m) (price in dollars)} & 3.44 & 3.30 & 3.17 & 3.04 \\ \hline \end{array} \][/tex]

We need to determine which type of fuel recorded a greater percentage change in price over the previous month. To do this, we will first calculate the percentage change in price for fuel B for each month:

1. Calculate the percentage change from month 1 to month 2:

[tex]\[ \text{Percentage change} = \left( \frac{3.30 - 3.44}{3.44} \right) \times 100 \% = -4.07 \% \][/tex]

2. Calculate the percentage change from month 2 to month 3:

[tex]\[ \text{Percentage change} = \left( \frac{3.17 - 3.30}{3.30} \right) \times 100 \% = -3.94 \% \][/tex]

3. Calculate the percentage change from month 3 to month 4:

[tex]\[ \text{Percentage change} = \left( \frac{3.04 - 3.17}{3.17} \right) \times 100 \% = -4.10 \% \][/tex]

Therefore, the percentage changes for each month for fuel B are approximately [tex]\(-4.07\% \)[/tex], [tex]\(-3.94\% \)[/tex], and [tex]\(-4.10\% \)[/tex].

4. Average percentage change for fuel B:

[tex]\[ \text{Average percentage change} = \frac{-4.07 - 3.94 - 4.10}{3} \approx -4.03 \% \][/tex]

5. Determine the highest absolute percentage change for fuel B:

The highest absolute percentage change for fuel B is [tex]\(|-4.10 \%|\)[/tex] which is [tex]\(4.10 \%\)[/tex].

### Conclusion

- For fuel A, the price is decreasing by 12% per month.
- For fuel B, the percentage changes over the months were approximately [tex]\(-4.07\% \)[/tex], [tex]\(-3.94\% \)[/tex], [tex]\(-4.10\%\)[/tex]. The greatest monthly percentage change for fuel B is [tex]\(|-4.10\%| = 4.10 \%\)[/tex].

Thus, comparing the changes:

- Fuel A recorded a greater percentage change of [tex]\(12\%\)[/tex] per month in comparison to fuel B's greatest change of [tex]\(4.10\%\)[/tex] per month.