The cost of admission \( C \) in dollars can be expressed as a function of the number of people \( P \) attending the fair. Since the admission fee is $3 per person, the equation relating \( C \) to \( P \) is:
\[ C = 3P \]
This means that the total cost \( C \) is equal to 3 dollars multiplied by the number of people \( P \).