Law of Supply

The Law of Supply states that when the price of a good or service rises, producers are generally willing to supply more of it to the market. Conversely, if the price falls, they tend to supply less. This relationship exists because higher prices can lead to increased profits, motivating producers to create more goods. The Law of Supply reflects how businesses respond to changes in market conditions, helping to balance supply and demand over time. Essentially, it shows that prices influence how much of something is made available for sale.