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
Licenses & Attributions
CC licensed content, Original
- Authored by: Paul Jones and Lumen Learning. License: CC BY: Attribution.