What does quantity supplied refer to?

Quantity supplied refers to the specific amount of a good or service that producers are willing and able to sell at a given price during a certain time period. This concept emphasizes the relationship between price and supply in a market; as prices change, the quantity supplied typically changes as well. Producers are motivated to supply more of a product at higher prices because higher potential revenues can cover their costs and yield profits.

This definition distinguishes quantity supplied from other concepts, such as the total demand from consumers or overall production efficiency, which do not directly relate to the amount suppliers are prepared to market based on prevailing prices. Understanding quantity supplied is fundamental to analyzing supply curves and market mechanisms in microeconomics.