Question

What is Law of Supply states that

Answer 1

The law of supply is a fundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.
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Answer 2

Answer:

In economics, there are a series of factors that will be responsible for ensuring that an economy works, or not, and that it prospers, or not. One such factor is the factor of supply, which means, the goods and services that are offered by producers on the market for customers to acquire. On the other end we have the demand, which is, the actual requirements of consumers for the services and goods that are offered by producers. Between these two fundamental factors, accounting for others, of course, that also play a role, an economy moves forward and prices are maintained.

As such, the Law of Supply states basically that when all factors are maintained constant, supply means that as the price of a good or service increases so does the offer of this good or service by suppliers, as it becomes profitable for them to produce such a good, or service. But this means that the reverse can also take place. If the price of a good, or service, plummets, so will the supply and offer of either, or both, of them.