Increasing opportunity costs is one explanation for the law of supply.

Question

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The law of supply states that as the price of a good or service increases, the quantity of that good or service that producers are willing and able to supply also increases. One explanation for this law is increasing opportunity costs. As a producer increases the production of a particular good or service, the opportunity cost of producing more of that good or service also increases, because resources must be shifted away from producing other goods or services. Therefore, producers must receive higher prices to compensate for the increased opportunity cost, resulting in an upward sloping supply curve.

Increasing Opportunity Costs Is One Explanation for the Law of Supply