Final answer:
The law of supply indicates that as the price of a good rises, the quantity supplied will rise. This natural relationship occurs because producers are more likely to increase production when they can achieve higher profits. In situations where additional costs are imposed on producers, like fines or cleanup requirements, the supply curve shifts left, leading to higher equilibrium prices.
Step-by-step explanation:
The law of supply states that when the price of a good rises, the quantity supplied will rise. This is because producers are willing to supply more of a good when they can sell it at higher prices, which would potentially increase their profits. Conversely, when the price of a good falls, the quantity supplied also tends to fall, since producing and selling the good becomes less profitable.
Looking at specific scenarios: