What does the law of supply state?

The law of supply articulates the direct relationship between price and quantity supplied. Specifically, it states that as the price of a good or service increases, producers are typically willing to supply a greater quantity to the market. This is because higher prices generally provide an incentive for suppliers to produce more, as they can achieve greater revenue and cover production costs.

The underlying principle is that when producers anticipate higher selling prices, they are motivated to increase their production to take advantage of potential profits. Conversely, if prices decrease, the incentive to supply more diminishes, often leading to a reduction in the quantity supplied. This relationship is a fundamental concept in economics that helps explain producer behavior in response to market conditions.

The other options misrepresent this relationship; they either suggest an inverse correlation or imply no connection at all between price and supply, which contradicts the basic premise of the law of supply.