Law of Supply

The Law of Supply states that, all other things equal, as the price of a good/service increases, the quantity supplied by producers increases as well. This is represented by the upward-sloping supply curve on a graph, indicating that higher prices incentivize producers to supply more goods or services to the market.

• The Law of Supply makes intuitive sense: if a producer knows that they can get paid more for a product, they will be willing to make more of that product to earn higher profits.

The Supply Curve shows the Price on the vertical axis and the Quantity on the horizontal axis.

Source: Wikipedia