The Law of Supply The law of supply states that, all other factors being equal, as the price of a good or service increases, the quantity supplied by producers increases, and vice versa. This creates a direct relationship between price and quantity supplied, as higher prices offer greater profit potential for firms. Supply Curve: A graphical representation that is typically upward-sloping, reflecting that producers are willing to sell more at higher prices. Determinants of Supply (Shifters): Fac