According to the law of supply, what happens when the price of a good rises?

The law of supply states that there is a direct relationship between the price of a good and the quantity supplied, meaning that as the price rises, producers are willing and able to supply more of the good to the market. This is because higher prices can lead to greater profits, incentivizing suppliers to increase production and bring more goods to market.

When prices rise, existing producers may increase their output to take advantage of the potential for higher revenue. Additionally, higher prices might attract new suppliers into the market who see an opportunity to profit. Thus, the quantity supplied increases in response to the price rise, demonstrating the principles outlined in the law of supply.

Other options do not align with the law of supply. The increase in quantity demanded relates to the law of demand rather than supply. An increase in price does not directly disrupt market equilibrium; it might lead to a shift towards a new equilibrium rather than a disruption. Finally, consumer preferences changing is not a direct consequence of the price increase itself but rather a broader aspect of market dynamics.