Final answer:
The law of supply states that there is a direct relationship between the price and the quantity of a good that producers are willing to supply, with higher prices leading to a greater quantity supplied, all other factors being constant.
Step-by-step explanation:
According to the law of supply, there is a direct relationship between the price of a good and the quantity of it that producers are willing to supply. Specifically, this economic principle states that, assuming all other variables are held constant, if the price of a good or service increases, producers are typically willing to supply more of it because they can earn higher revenues. Conversely, if the price decreases, the quantity supplied will also tend to decrease because earning potential diminishes.
This principle is fundamental in understanding market economies' behaviors and interactions between producers and consumers. The law of supply, alongside the law of demand, helps explain how market prices are determined and how resources are allocated efficiently in a competitive marketplace.