What is the term for the fundamental characteristic of supply which states that quantity supplied rises as price rises?

The correct term that describes the relationship where quantity supplied increases as price increases is the Law of Supply. This principle explains how producers are generally willing to offer more of a good or service for sale at higher prices because higher prices can cover production costs and potentially increase profit margins.

The Law of Supply highlights the direct correlation between price and quantity supplied—when prices rise, the incentive for suppliers to produce more goods increases as they aim to maximize their revenue. This concept operates under the assumption that all else is equal, emphasizing that price is a major factor influencing supply levels in a market.

The other concepts mentioned are distinct from the Law of Supply. The Law of Demand, for example, explores the opposite relationship, where higher prices typically lead to a decrease in the quantity demanded by consumers. Market equilibrium refers to the point where quantity supplied equals quantity demanded, and price elasticity measures how responsive the quantity supplied or demanded is to changes in price. Each of these concepts plays a unique role in understanding market mechanics, but they do not define the specific characteristic that quantity supplied rises with increasing prices.