The relationship between price and quantity supplied is generally positive, meaning that as the price of a good or service increases, the quantity supplied by producers also increases. This positive relationship is commonly referred to as the law of supply. Producers are more willing and able to supply larger quantities of a good or service when the price is higher as it allows them to generate higher revenues and potentially achieve higher profits. Alternatively, when the price decreases, the quantity supplied tends to decrease as producers find it less profitable to supply larger quantities at lower prices.
The relationship between price and quantity supplied is generally considered positive. As the price of a good or service increases, the quantity supplied by producers usually increases as well. This is because higher prices create an incentive for producers to supply more of the good or service in order to capture higher profits. Conversely, when prices decrease, the quantity supplied tends to decrease as well because producers are less willing or able to supply the good or service at lower profit margins. This positive relationship is a fundamental concept in economics and is often represented by an upward-sloping supply curve on a graph.
