The law of supply states that there is a positive inverse relationship between the price and the supply curve the quantity supplied the demand curve the quantity demanded . Part 2 Thus, as the price increases, A. the supply increases. B. the demand increases. C. the quantity produced by firms increases. D. the quantity demanded increases. Part 3 According to the law of supply, as the price of the good increases, it causes A. a shift of the supply curve to the right. B. a shift of the supply curve to the left. C. a movement downward along the supply curve. D. a movement upward along the supply curve