What does 'supply' signify in economic terms?

In economic terms, 'supply' refers to the quantity that producers are willing to sell at various prices. This concept highlights how the amount of a good or service available in the market can change depending on its price. As prices rise, producers are generally more motivated to increase production to maximize profits, leading to a higher quantity supplied. Conversely, if prices fall, producers may reduce the quantity they are willing to supply since it might not be as profitable to do so.

Understanding this definition is crucial for comprehending how markets function, as supply interacts with demand to determine the equilibrium price and quantity in the marketplace. The other choices touch on different concepts: the total amount of goods stored relates more to inventory, the willingness of consumers to buy pertains to demand, and general demand for goods does not capture the producer's perspective on supply. Therefore, the correct understanding of 'supply' focuses specifically on the actions and decisions of producers in relation to price.