In 5-10 sentences, explain the Law of Supply.

The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa. The law of supply says that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.

• The law of supply says that a higher price will induce producers to supply a higher quantity to the market.

• Supply in a market can be depicted as an upward sloping supply curve that shows how the quantity supplied will respond to various prices over a period of time.

• Because businesses seek to increase revenue, when they expect to receive a higher price, they will produce more.

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