Question

Which of the following functions shows the Law of Supply?

• A. \( S = f(P) \)
• B. \( S = f(\frac{1}{P}) \)
• C. \( S = f(Q) \)
• D. None of these

Hint:

Law of Supply: Supply (S) is a direct function of Price (P), so the correct notation is \( S = f(P) \).

Answer 1

The Correct Option is A

The Law of Supply states that, ceteris paribus, the quantity supplied (S) of a good is a direct function of its price (P). This means as the price increases, the quantity supplied increases, and vice-versa. This direct relationship is represented functionally as \( S = f(P) \), which reads as "Supply is a function of Price."

Option (B) \( S = f(\frac{1}{P}) \) would imply an inverse relationship, which describes the Law of Demand.
Option (C) is incorrect as supply is a function of price, not quantity itself.