Theory as model building

A firm's supply depends on the prices of the goods and of the materials used to make them: =6+0.82

(d) The price of materials is =7. Find the optimal quantities to produce if the price of the good is =50 and =60. Graph the supply curve. (e) Now, the price of materials changes to ,1 =12. Find the optimal quantities to produce if the price of the good is =50 and =60. Show the shift of the supply curve on a graph.