Which of the following terms describes the relationship between the price of a good and the quantity supplied?

The relationship between the price of a good and the quantity supplied is described as a direct relationship. This means that as the price of a good increases, the quantity supplied also increases, and conversely, if the price decreases, the quantity supplied tends to decrease as well. This behavior is grounded in the law of supply, which states that producers are willing to offer more of a good for sale at a higher price because it becomes more profitable for them to do so.

In practical terms, when the price of a good rises, it signals to suppliers that there is a demand for that good at that higher price level, thus incentivizing them to increase their production and supply. This relationship is typically represented graphically with an upward-sloping supply curve, illustrating that higher prices lead to a larger quantity supplied.

This direct relationship contrasts sharply with the other options. An inverse relationship would suggest that as one factor increases, the other decreases, which does not accurately describe the interplay between price and quantity supplied. A lack of any relationship would imply that changes in price have no impact on quantity supplied, ignoring the fundamental laws of economics. An elastic relationship refers to how sensitive the quantity supplied is to changes in price and is not a direct descriptor of the relationship itself