The Law of Supply states that price and quantity supplied have a direct relationship. This statement is:

The Law of Supply asserts that there is a direct relationship between price and quantity supplied. This means that as the price of a good or service increases, suppliers are willing to produce and offer more of that good or service for sale. Conversely, if the price decreases, the quantity supplied also tends to decrease.

This relationship is fundamental to understanding market dynamics. It can be visually represented by an upward-sloping supply curve on a graph, where the x-axis represents the quantity supplied and the y-axis represents the price. As sellers anticipate higher prices, their incentive to produce increases, leading to an increase in supply. This principle holds true under normal market conditions, assuming other factors affecting supply remain constant.

While there can be exceptions in specific circumstances, such as in cases of certain types of goods like Giffen goods or Veblen goods, the direct relationship described by the Law of Supply generally applies to most goods and services in a competitive market.