SOLUTION: a firm brings 5000 units of a commodity to the market at a price of Rs. 5/- per unit. If the price falls to Rs. 3.50/- per unit, firm offers only 2000 units for sale. Derive the su

Question 1107949: a firm brings 5000 units of a commodity to the market at a price of Rs. 5/- per unit. If the price falls to Rs. 3.50/- per unit, firm offers only 2000 units for sale. Derive the supply function and draw its graph also.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
units on x and price on y
(5000, 5) and (2000, 3.5) are points
slope is 1.5/3000=0.0005
point slope formula y-y1=m(x-x1) m slope (x1, y1) point
y-5=0.0005(x-5000)
y=0.0005x+2.5

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