Imagine this supply schedule reflects the quantity of candy bars supplied by Chuck's Chocolates in a given week:
|Price per bar||Quantity of candy bars supplied|
A supply schedule shows how much of a good or service producers will supply at different prices.
Simply stated, the law of supply says that as the price of a good or service rises, the quantity supplied of that good or service also rises.
Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls.
Notice that only two variables are included: price and quantity.
That's all the law of supply includes; it states how a change in the price of a good or service will affect the quantity supplied of that good or service.