To determine whether an exponential equation represents growth or decay, you can examine the base of the exponential function in the equation, usually of the form \( y = a \cdot b^x \), where:
- If \( b > 1 \): The equation represents exponential growth because the values of \( y \) increase as \( x \) increases.
- If \( 0 < b < 1 \): The equation represents exponential decay because the values of \( y \) decrease as \( x \) increases.
Example of an Exponential Growth Equation:
An example of exponential growth is \( y = 3 \cdot 2^x \).
Example of an Exponential Decay Equation:
An example of exponential decay is \( y = 5 \cdot (0.5)^x \).