According to Wikipedia, the Law of Supply states that:
an increase in price results in an increase in quantity supplied.
However, if the market was overflowing with a particular good (meaning higher supply), wouldn't the prices be lower? In the same vein, if the price was higher, wouldn't it be because the supply was less (all other factors, including Demand, constant). Also, wouldn't this create a run-away effect where increasing prices and supply drive more increase in each other, effectively launching prices to near infinity?
Wikipedia also states, if I understand correctly, that this view belongs to a "modern mainstream economics".
Can someone explain this seeming paradox? When we talk about supply, are we talking about future supply which will be guided based on speculations on current prices? If so, what laws will govern the present supply?