The law of supply states that there is a direct relationship between price and the quantity supplied. This means that as the price of a good or service increases, producers are willing and able to supply more of that good or service to the market. Conversely, if the price decreases, the quantity supplied tends to decrease as well.
This principle is based on the idea that higher prices offer an incentive for producers to increase their output to take advantage of potential profits. For example, if a company can sell a product for a higher price, it might invest in more resources or labor to produce more of that product. Essentially, when the market price rises, the motivation for suppliers to increase production also rises, leading to more of the product being made available.