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# Why It Matters

## Understand linear functions, their equations, graphs, and applications to business

### Introduction

You will see the table below during this module. The real questions is not how we got the data, but how do we interpret this data. Everyone should easily spot that the Quantity for Supply and Demand are the same at a price of $1.40 per gallon. Why is this important and what would happen if we set our price lower or higher than this amount?  Table 3 Price (per gallon) Quantity demanded (millions of gallons) Quantity supplied (millions of gallons)$1.00 800 500 $1.20 700 550$1.40 600 600 $1.60 550 640$1.80 500 680 $2.00 460 700$2.20 420 720

### Learning Outcomes

• Given sufficient information about a line, find the slope and write the equation of a line
• Given an equation of line, identify the slope, find the intercepts, and graph the line
• Find the equation of a line approximating data using technology to compute a linear regression.
• Model cost, revenue, profit, supply, and demand using linear functions.
• Find the intersection of lines, and use that to determine the break-even point for cost/revenue functions, and equilibrium price for supply/demand functions.
• Solve linear inequalities and show the solution graphically and symbolically