If a company's sales increase by the same amount each year, what type of growth is it experiencing?

When a company's sales increase by the same amount each year, it is experiencing linear growth. This type of growth can be visualized as a straight line when represented on a graph, where the x-axis represents time (years) and the y-axis represents sales. In linear growth, the relationship between the time and the quantity increases at a constant rate. For example, if sales increase by $10,000 every year, the sales figures form a sequence of values that are evenly spaced apart on the graph.

In contrast to linear growth, exponential growth would involve the sales increasing by a percentage of the sales amount, leading to larger increases over time, which creates a curve that accelerates upward. Quadratic growth would involve the sales increasing based on a degree-two polynomial function, resulting in a parabolic curve. Logarithmic growth is characterized by fast increases that slow down over time, leading to a graph that rises steeply initially but flattens out.

Thus, the consistent increase in sales by the same amount each year distinctly characterizes linear growth, confirming that the answer is correct.