What is the direct relationship between price and quantity supplied?

The quantity of a good or service that producers are willing to produce at a given price. Change in price affect the quantity supplied and these changes are represented in the movement along the supply curve.

The reason for the direct relationship between price and quantity supplied is the seller's goal of profit-maximization. For the seller to make a profit, the sell price must be sufficient to cover the seller's cost of production. An increase in the selling price will make it easier for sellers to cover their cost of production. An increase in the selling price will cause existing producers to increase their production and will attract new producers into the market. Thus, an increase in the selling price will cause a increase in the quantity supplied.