According to the law of supply, what happens when the price of a good increases?

The law of supply states that, all else being equal, as the price of a good increases, the quantity supplied of that good also increases. This relationship exists because higher prices provide an incentive for producers to supply more of that good to the market. When prices rise, producers are often willing and able to offer more goods for sale to take advantage of the potential for higher revenue.

This principle reflects the behavior of suppliers in a competitive market. As they anticipate higher profits from increased sales at elevated prices, they are more likely to allocate resources toward producing larger quantities. Thus, when the price of a good increases, it leads to an upward movement along the supply curve, resulting in an increase in the quantity supplied. This concept is foundational in economics and helps to explain various market behaviors in relation to price fluctuations.