The law of supply states that:
- **Option B**: Rising prices lead to rising supply of a product.
This means that as the price of a product increases, suppliers are more willing to produce and sell more of that product in the market. The higher price serves as an incentive for producers to increase their supply because they can make more profit per unit sold. This relationship between price and supply is a fundamental concept in economics.
For example, if the price of smartphones goes up, phone manufacturers may decide to produce more smartphones to take advantage of the higher prices and increase their profits. This results in a greater quantity of smartphones being supplied to the market.
Understanding the law of supply helps economists and businesses predict how changes in prices will impact the quantity of goods and services supplied, which is essential for making informed decisions in the market.
