To answer the question in the image:

The given functions are:

1. $f(x) = 3^x$
2. $g(x) = 3^x - 1$

The transformation from $f(x)$ to $g(x)$ involves subtracting 1 from the output of $f(x)$. This means that the graph of $f(x)$ is shifted 1 unit downward, as the subtraction affects the vertical position of the graph.

Correct answer: B. The graph of $f(x) = 3^x$ should be shifted 1 unit downward.

Would you like a detailed graphing explanation or more help with transformations?

Here are 5 questions to expand your understanding:

1. How do vertical transformations differ from horizontal transformations?
2. What would happen if you added 2 to $3^x$ instead of subtracting 1?
3. How can you identify the horizontal asymptote for the transformed function $g(x)$?
4. How does shifting downward affect the domain and range of $g(x)$?
5. Could a graphing utility verify the transformation visually?

Tip: Always identify whether a transformation is horizontal or vertical by checking whether the change is applied inside or outside the function's main formula!