To test whether the law of supply holds using calculus, you should: A) take the partial derivative of quantity supplied Q^S with respect to P and conclude that the law of supply holds if this derivative is positive at the market price. B) take the partial derivative of quantity supplied Q^S with respect to P and conclude that the law of supply holds if this derivative is negative at the market price. C) take the derivative of P with respect to quantity supplied Q^S and conclude that the law of supply holds if this derivative is positive at the market price. D) take the derivative of P with respect to quantity supplied Q^S and conclude that the law of supply holds if this derivative is negative at the market price.

Question

Quizplus · Accepted Answer

The law of supply states that there is a direct relationship between price and quantity supplied, meaning as the price increases, the quantity supplied also increases. Taking the partial derivative of quantity supplied with respect to price (P) and finding it to be positive supports this law, as it indicates that quantity supplied increases as price increases.

To Test Whether the Law of Supply Holds Using Calculus