What does the law of supply state?

The law of supply asserts that, all else being equal (ceteris paribus), an increase in the price of a good or service will lead to an increase in the quantity supplied by producers. This relationship is fundamental in economics because it highlights the direct correlation between price and quantity supplied.

As prices rise, producers are typically more willing and able to produce and sell more of the good, incentivized by the potential for higher revenues and profits. This principle reflects the response of suppliers to market conditions, which drives the supply curve to slope upward.

The other options do not align with this principle. For example, the proposition that quantity supplied decreases as price increases contradicts the law of supply. Similarly, stating that supply remains constant regardless of price changes fails to recognize the dynamic nature of supply in response to price fluctuations. This understanding is crucial for analyzing market behavior and designing effective economic policies.