The document discusses the law of supply. It states that according to the law of supply, if the price of a good or service increases, then the quantity supplied will also increase, and vice versa. It provides an analysis of a supply curve and how it relates to price and quantity supplied. The assumptions of the law of supply are that producers aim to maximize profits and that higher prices are needed to cover higher costs as output increases. It concludes that the law of supply describes the simple relationship between price and supply - the higher the price, the more suppliers will produce.