The law of supply states that:

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, all other factors remaining constant. Therefore, increasing the price of a product or service leads to a higher quantity supplied, and decreasing the price leads to a lower quantity supplied. This is the inverse of the law of demand, which states that as the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa.

The Law of Supply States That