The law of supply indicates that, other things equal, how will sellers generally respond to different price levels for a product?

Introduction / Context:
The law of supply is a basic principle of microeconomics that describes how producers respond to price changes. While the law of demand explains consumer behaviour, the law of supply focuses on the behaviour of sellers or firms. Exam questions often ask you to state the law of supply correctly and to distinguish it from statements about demand. Understanding this law is essential for drawing and interpreting supply curves.

Given Data / Assumptions:

• The law of supply holds other things equal, meaning input prices, technology and other factors are constant.
• We are interested in how the quantity supplied responds to changes in the market price.
• Options describe relationships between price and quantity for both buyers and sellers.
• We assume a normal upward sloping supply curve for a competitive market.

Concept / Approach:
The law of supply states that, other things equal, there is a direct relationship between the price of a good and the quantity supplied. As the price increases, producers are willing and able to supply more units, because higher prices generally mean higher potential revenues and profits. As the price decreases, the quantity supplied falls because some producers will find it unprofitable to produce at that lower price. This behaviour leads to an upward sloping supply curve from left to right. The law of supply is about sellers behaviour, not buyers, so any statement framed in terms of buyers purchasing less at high prices describes demand, not supply.

Step-by-Step Solution:
Step 1: Recall that the law of supply expresses a direct relationship between price and quantity supplied.Step 2: Look for the option that states that higher prices lead to a greater quantity supplied, and lower prices to a smaller quantity supplied.Step 3: Identify option C, which says sellers will offer more of a product at high prices than at low prices.Step 4: Confirm that the other options either describe demand behaviour or incorrectly describe the slope of the supply curve.

Verification / Alternative check:
You can verify this by considering a simple example. Suppose a farmer can sell wheat at 10 rupees per kilogram or at 20 rupees per kilogram. At the higher price, the farmer has a stronger incentive to allocate more land and labour to wheat instead of other crops, increasing the quantity supplied. At a very low price, the farmer may prefer to grow something else, reducing the quantity of wheat supplied. This demonstrates the direct relation between price and quantity supplied and is consistent with an upward sloping supply curve.

Why Other Options Are Wrong:
Option A is wrong because it states the opposite of the law of supply, claiming that more is offered at low prices, which would imply a downward sloping supply curve. Option B is incorrect in the context of the law of supply because it describes buyers behaviour and matches the law of demand instead. Option D is wrong because the supply curve is generally upward sloping, not downward sloping. These options either mix up supply with demand or reverse the correct relationship between price and quantity supplied.

Common Pitfalls:
Students sometimes confuse the law of supply and the law of demand because both relate price to quantity. The key difference is that demand curves slope downward, showing an inverse relationship, while supply curves slope upward, showing a direct relationship. Another pitfall is not carefully reading whether the option refers to buyers or sellers. To avoid mistakes, always connect the law of supply with producers and an upward sloping curve, and the law of demand with consumers and a downward sloping curve.

Final Answer:
The law of supply indicates that, other things equal, sellers will offer more of a product at high prices than at low prices.