A company that experiences the same percentage increase in sales each year is demonstrating which kind of growth?

The scenario described, where a company experiences the same percentage increase in sales each year, is indicative of exponential growth. In this type of growth, the quantity increases by a consistent percentage over time, leading to growth that accelerates as the base value gets larger. For example, if sales increase by 10% each year, the actual increase in sales becomes larger each subsequent year because it builds upon the larger total from the previous year. This compounding effect is what characterizes exponential growth.

In contrast, linear growth would show a constant absolute increase each year, resulting in a straight-line graph when plotted over time. Static growth means that there is no increase in sales at all, while monotonic growth refers to growth that consistently moves in one direction (either always increasing or always decreasing), which does not inherently imply a specific type of growth pattern like linear or exponential. Thus, the consistent percentage increase aligns with the principles of exponential growth.