Linear growth occurs when a quantity grows by the same absolute amount in each unit of time
Exponential growth occurs when a quantity grows by the same relative amount, that is,by the same percentage in each unit of time
Thus according to the defined terms during the worst period of hyperinflation in a certain country, the price of food increase at a rate of 25% per month is exponential ....
Hi, to answer this question we have to analyze the information given:
<em>During the worst period of hyperinflation in a certain country, the price of food increase at a rate of 25% per month.
</em>
So, we are increasing by a factor (1.25 or 125% every month), because we have that increase by a factor and not by a constant number, that increase is an exponential increase.
Feel free to ask for more if needed or if you did not understand something.
