Question

Question 6(Multiple Choice Worth 5 points)

(09.06 LC)
A company launches 4 new products. The market price, in dollars, of the 4 products after a different number of years, x, is shown in the following table:

Based on the data in the table, for which product does the price eventually exceed all others?
Product 1
Product 2
Product 3
Product 4

Answer 1

Product 3

Explanation:

You can easily find it out based on the last column (Year 3)... where product 3 has the highest market value.

This is very logical due to exponential nature of the price evolution function... it might start lower than most of the other products, but it will grow at a much faster rate... so much that in second year, it's already tie for the most market value.

In year 3, the difference is obvious and it would be even bigger in the following years.