The Law of Supply States is the principle that an increase in price typically leads to an increase in suppliers’ willingness and ability to supply a product or service. In other words, when the price for a given product goes up, more people are willing and able to provide it. This law underpins much of economics and ultimately helps to explain why higher prices can be charged for goods or services that are in short supply. Put simply, if you’re looking to get your hands on something rare, expensive bidder wins!