Consider the statement of the law of supply. Which one of the following is a way to explain the reason for validity of the law of supply? Your answer is------- Consider the statement of the law of supply. Which one of the following is a way to explain the reason for validity of the law of supply? Your answer is------- Profitability effect Income effect Consumers' substitution effect on consumption side, such as increase in price of Coke would make consumers consume more Pepsi. Horizontal summation effectWhich one of the following is not a consequence of the price control policy? Which one of the following is not a consequence of the price control policy? High administrative cost Tendency of illegal transactions Either surplus or shortage created Efficient functioning of the market