Supply Theory is an economic concept that explains how the quantity of a good or service that producers are willing to sell changes in response to price changes. According to this theory, as prices increase, suppliers are more motivated to produce and sell more of that good, leading to a higher supply. This relationship is often illustrated through a supply curve, which typically slopes upward. The theory also considers factors that can affect supply, such as production costs, technology, and government regulations. For instance, if the cost of raw materials decreases, suppliers may increase their output, shifting the supply curve to the right. Understanding Supply Theory helps businesses and policymakers make informed decisions about production and pricing.