The Law of Supply states that the quantity supplied of a product is positively correlated with its price. In other words, when prices increase, producers are willing to supply more goods in order to make more profit. This law is closely related to the economic concept of elasticity of demand: the responsiveness or sensitivity to price changes. Generally speaking, when things are price elastic (i.e. demand for it increases significantly at lower prices and decreases significantly at higher prices), then the Law of Supply will have a great impact on the market.