What is defined as the amount of goods that producers are willing to sell at a given price?

The concept of supply refers to the quantity of goods and services that producers are prepared to sell at a specific price within a given time frame. It reflects the readiness of producers to offer products based on price levels; typically, higher prices motivate producers to supply more products, while lower prices may result in reduced supply. This definition is fundamental in the context of economics, as it establishes the relationship between price and the quantity of goods available in the market.

Demand, in contrast, pertains to the quantity of goods that consumers are willing to purchase at various price levels. Market equilibrium refers to the point at which supply equals demand, meaning there is neither a surplus nor a shortage in the market. Production capacity describes the maximum output that can be produced in a given timeframe, which is influenced by factors like available resources and technology, but does not specifically address the relationship between price and the willingness to sell. Therefore, the concept of supply is directly aligned with the scenario of producers' willingness to sell at a defined price, marking it as the accurate choice in this context.