According to the law of supply, what happens to the quantity of a product supplied as its price increases?

The law of supply states that there is a direct relationship between the price of a product and the quantity of that product that suppliers are willing to offer for sale. As the price of a product increases, suppliers are typically more motivated to produce and sell more of that product because higher prices generally lead to higher potential revenues and profits. This encourages producers to allocate more resources towards the production of the higher-priced item, thereby increasing the quantity supplied.

The premise behind this relationship stems from the incentive for businesses to capitalize on higher prices. When prices are up, it signals to suppliers that there is stronger demand and greater profitability in selling that particular good or service, prompting them to increase their supply to take advantage of these favorable market conditions. Thus, when the price rises, the response from suppliers is to increase the quantity they supply.