What is the law of supply and how does profit motive help explain it?

The law of supply states that, all else being equal, an increase in the price of a good or service leads to an increase in the quantity supplied. This relationship occurs because higher prices typically enhance profitability for producers, incentivizing them to produce and offer more of the good to the market. The profit motive drives businesses to allocate resources efficiently, aiming to maximize their returns by responding to price changes. Consequently, as prices rise, suppliers are motivated to increase production to capitalize on the potential for greater profits.