According to the law of supply, what happens when the price of a good increases?

The law of supply states that there is a direct relationship between the price of a good and the quantity supplied. When the price of a good increases, suppliers are motivated to produce and offer more of it in the market. This increase occurs because higher prices often lead to increased potential profits for sellers, making it worthwhile for them to allocate more resources to production.

This principle reflects the idea that as prices rise, sellers are incentivized to expand their output to take advantage of the higher prices. Consequently, an increase in price typically results in an increase in quantity supplied, which aligns perfectly with the correct answer. Understanding this relationship is fundamental in economics as it helps explain how market dynamics adjust to changes in prices.