What relationship does the supply curve illustrate between price and quantity supplied?

The supply curve illustrates a fundamental principle of economics known as the law of supply. This principle states that there is a direct relationship between the price of a good or service and the quantity that producers are willing to supply. When the price of a good increases, suppliers are incentivized to produce more of that good because the potential for higher revenue makes it more profitable. Conversely, when the price decreases, the incentive to supply diminishes, leading to a lower quantity supplied.

In the context of the choices provided, the correct option indicates that as price increases, quantity supplied also increases. This relationship showcases how suppliers respond to changes in market prices, demonstrating the responsiveness of supply to price fluctuations. Thus, the correct answer clearly reflects this core economic concept, illustrating the positive correlation between price and quantity supplied in a competitive market.