Final answer:
The law stating that higher prices lead to an increased quantity supplied, while lower prices lead to a decreased quantity supplied, is the law of supply. The correct option is A) law of supply.
Step-by-step explanation:
The law you are referring to is called the law of supply. This economic principle states that there is a direct relationship between the price of a good or service and the amount that suppliers are willing to provide.
According to the law of supply, when the price of a good or service increases, suppliers are more inclined to provide a greater quantity of that good or service, assuming all other factors remain constant. Conversely, when prices decrease, suppliers will generally be less willing to supply as much of the good or service.