Math Problem Statement

A store manager adjusts the price of an item each week. The price of the unsold item, in dollars, after x weeks is modeled by the exponential function f(x) = 320(0.90)^x. Determine the initial price, whether the price increases or decreases, and the rate of change.

Solution

Let's analyze the exponential function given in the problem:

The function is: f(x)=320(0.90)xf(x) = 320 \cdot (0.90)^x

This function indicates an exponential decay model, where the base 0.900.90 is less than 1, showing that the price decreases over time.

  1. Initial Price: The initial price before any adjustments (when x=0x = 0) is found by substituting x=0x = 0 into the function: f(0)=320(0.90)0=320f(0) = 320 \cdot (0.90)^0 = 320 So, the initial price is $320 (Answer: B for question 2).

  2. Price Change: Since the base of the exponent 0.900.90 is less than 1, the price is decreasing (Answer: B for question 3).

  3. Rate of Change: The rate of change each week is 10%10\% since 0.900.90 represents a decrease of 10%10\% each week (Answer: A for question 4).

Final Answers:

  • Question 2: $320
  • Question 3: decreases
  • Question 4: 10%

Would you like further details on any of these answers?

Here are some related questions for deeper understanding:

  1. How would the function change if the price increased each week?
  2. What would be the price after 5 weeks with this model?
  3. How would a 20% weekly decrease affect the initial model?
  4. If the initial price was different, how would it affect the function?
  5. What is the impact of exponential decay in real-world pricing?

Tip: In exponential decay, a base between 0 and 1 indicates a decrease, while a base greater than 1 indicates an increase.

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Math Problem Analysis

Mathematical Concepts

Exponential Decay
Algebra
Exponential Functions

Formulas

f(x) = a(b)^x
Exponential Decay Formula

Theorems

Properties of Exponential Functions

Suitable Grade Level

Grades 9-11