Your Monthly Sales of Tofu Ice Cream Are Falling at an Instantaneous

question 114

Multiple Choice

Your monthly sales of Tofu Ice Cream are falling at an instantaneous rate of 3% per month. If you currently sell $s = 1,070$ per month, solve the differential equation that describes your change in sales to predict your monthly sales. Assume that the current sales are given for time $t = 0$ .
NOTE: Enter your answer in the form $s = f ( t )$ , where f is some function of t.

• A) \(s = 1,070 + 0.03 t\)
• B) \(s = 1,070 + t ^ { 0.03 }\)
• C) \(s = 1,070 + t ^ { - 0.03 }\)
• D) \(s = 1,070 e ^ { 0.03 t }\)
• E) \(s = 1,070 e ^ { - 0.03 t }\)

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Definitions:

Network Externality

A situation where the value of a product or service increases as more people use it.

Intrinsic Value

The inherent or fundamental worth of something, not influenced by external factors or market conditions.

Extrinsic Value

The portion of an item's worth that is not inherent to the item itself but is attributed by external factors or circumstances.

Snob Effects

The phenomenon where the demand for a certain good increases as its price increases, because it is perceived as a status symbol.