The law of supply says that when the price of service or a good increases, the quantity of service or a good that the suppliers offer will increase.
The law of supply is a micro-economic law. It states that, suppliers will attempt to maximize their profits by increasing the number of goods available for sale if the price of an item rises. If consumer demand increases over time, the price will also increase. In this situation, suppliers can choose to devote new resources to production and even new suppliers can enter the market, which increases the quantity of goods.
In a competitive market, suppliers response to the price determines the price, which in return determines the quantity to be supplied. The law of supply explains how market economies distribute resources and exercise control by combining the law of demand.
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