Which term describes an increase in the quantity of a product supplied as a direct result of an increase in its price?

The concept that describes an increase in the quantity of a product supplied as a direct result of an increase in its price is known as the Law of Supply. This law states that, all else being equal, an increase in the price of a good or service will lead to an increase in the quantity supplied. This relationship occurs because suppliers are generally willing to produce more of a product when they can sell it at a higher price, as it potentially increases their revenue and profit margins.

When the price of a product rises, it incentivizes producers to increase production to take advantage of higher prices, reflecting the basic economic principle of supply responding to market conditions. This principle applies in a variety of markets and is foundational in understanding how supply functions within an economy, helping to illustrate supplier behavior in response to price changes.

The other terms do not accurately capture this specific relationship. Supply Responsiveness generally refers to how responsive the quantity supplied is to a change in price but lacks the precision of the Law of Supply. Inelastic Supply refers to a situation where the quantity supplied is not significantly responsive to price changes, which contradicts the concept at hand. Supply Shock refers to a sudden and unexpected change in supply due to external factors (like natural disasters), which is unrelated to the