What is the relationship between price and quantity supplied, according to the law of supply?

The law of supply states that, all else being equal, an increase in the price of a good or service typically leads to an increase in the quantity supplied. This relationship is termed direct because producers are generally willing to supply more of a product at higher prices; they are incentivized to increase production to capitalize on the potential for greater revenue.

When the price rises, it often reflects higher demand or increased production costs, prompting suppliers to provide larger quantities to the market to maximize their profits. Therefore, as prices increase, the quantity of goods that suppliers are willing to sell also increases, demonstrating the direct relationship between price and quantity supplied. This principle is a foundational concept in microeconomic theory, illustrating the behavior of producers in response to market conditions.