Law of Supply

An economic law that states that there is a positive or direct relationship between the prices producers receive and the quantities that they are willing to supply to the market.

Suppose that the price of lattes rises from U.S. $3 to U.S. $3.25, then the quantity of lattes coffee shops are willing to sell rises from say 10,000 to 10,700. This shows that higher prices lead to a higher quantity supplied as stipulated in the law of supply.