How is supply defined in economic terms?

In economic terms, supply refers to the desire and ability of producers to sell a good at various prices. This definition encompasses not only the quantity of a product that producers are willing to bring to the market but also their readiness to offer it based on market conditions. Each price point can affect supply levels differently; as prices rise, producers are generally more inclined to supply more of the product, reflecting their ability and willingness to expand output to maximize profits.

The distinction is essential because it illustrates the relationship between price and production decisions that businesses must make. This definition emphasizes that supply is not just about having an inventory available for sale, but also about the conditions that motivate producers to enter the market with their goods and services. Additionally, it highlights that there is a proactive element involved — producers must both desire to sell and possess the means to do so to be counted as a part of the supply in the market.