Question

1. explain in your own words, the reason why the law of supply occurs.

Explanation:

The law of supply states that, ceteris paribus (all else being equal), as the price of a good or service rises, the quantity supplied by producers increases, and vice - versa. Producers are motivated by profit. When prices are higher, they can earn more profit per unit sold. So, they have an incentive to allocate more resources to the production of that good or service, increasing the quantity supplied.

Answer:

Producers are profit - motivated. Higher prices mean more profit per unit, so they increase production and quantity supplied.