According to the Law of Supply, what happens as the price of a good increases?

The Law of Supply states that there is a direct relationship between the price of a good and the quantity supplied. Specifically, as the price of a good increases, suppliers are incentivized to produce more of that good. This is because higher prices allow suppliers to cover their costs more effectively and potentially earn a greater profit. When the selling price rises, existing producers are motivated to increase their output, and new producers may enter the market, enhancing overall supply.

In contrast, if the price were to decrease, suppliers would likely reduce their output, as the lower price might not justify the production costs. Thus, the inherent principle of the Law of Supply reinforces that increased prices lead to increased production quantities, making the selected answer accurate.