This situation would be modeled by an exponential growth representation. This is because we are increasing by <em>18.36 percent </em>each year. This means that for each year, we take the number of households from last year and grow it by 18.36 percent. Thus, throughout the years, you accumulate more and more households, which leads to even bigger numbers.
If we were adding, for example, 18 households each year, the situation would be a linear increase situation. This is because the increase stays constant and does not change based on the numbers of the last iteration. Additionally, we know that our relationship is not a decreasing one because the problem says "more than the previous year," showing that there is growth occurring.
