Answer:
[tex]\displaystyle s=5,000p-50,000[/tex]
Step-by-step explanation:
Linear Model
The supply of cartons of oil in January 2021 is predicted to reach 50,000 cartons for Tawfiq Trading Company with the carton selling for $20.
If we call s the supply of cartons and p the price, the ordered pair (p,s) for this condition is (20 ; 50,000).
It's predicted that the supply will fall by 20,000 if the price falls by 20%. The new supply will be 50,000-20,000=30,000 and the new price will be 0.8*$20=$16. This gives us the second point (16 ; 30,000)
The equation of a line passing through points (p1,s1) and (p2,s2) can be found as follows:
[tex]\displaystyle s-s_1=\frac{s_2-s_1}{p_2-p_1}(p-p_1)[/tex]
Substituting the given points:
[tex]\displaystyle s-50,000=\frac{30,000-50,000}{16-20}(p-20)[/tex]
Calculating:
[tex]\displaystyle s-50,000=\frac{-20,000}{-4}(p-20)[/tex]
[tex]\displaystyle s-50,000=5000(p-20)[/tex]
Operating and simplifying:
[tex]\displaystyle s-50,000=5,000p-100,000[/tex]
[tex]\mathbf{\displaystyle s=5,000p-50,000}[/tex]
