Which law indicates that as the price of a good rises, the quantity supplied of that good also rises?

The law that states that as the price of a good rises, the quantity supplied of that good also rises is known as the Law of Supply. This principle reflects the direct relationship between price and quantity supplied: when producers receive a higher price for a product, they are generally motivated to produce more of that product to capitalize on the potential for increased revenue. This occurs because higher prices can cover the increased costs of production or provide a greater profit margin, encouraging producers to expand output.

In contrast, the Law of Demand indicates how quantity demanded decreases as prices increase and does not apply to the relationship described in the question. The Law of Scarcity pertains to the limitations of resources and consumer choices rather than the behavior of supply in relation to price changes. The Law of Diminishing Returns addresses the decrease in the incremental output when adding more of one input while keeping others constant, but it doesn't speak to the direct relationship between price and supply quantity. Hence, the Law of Supply accurately describes how seller behavior responds to price changes.