What does the Law of Supply state regarding the relationship between price and quantity supplied?

The Law of Supply asserts that there is a direct relationship between the price of a good and the quantity supplied. Specifically, as the price of a good increases, producers are willing and able to supply more of it to the market. This positive correlation occurs because higher prices typically provide an incentive for producers to increase production, as they can earn more revenue. Conversely, if the price decreases, producers will likely supply less of the good, since the lower price may not cover the costs of production or might yield lower profits.

This foundational principle of economics demonstrates how market dynamics operate and helps explain provider behavior in response to price changes. The concept is central to understanding supply curves, which are typically upward-sloping on a graph where the x-axis represents quantity supplied and the y-axis represents price.