What defines quantity supplied?

Quantity supplied is defined as the total amount of a good or service that producers are willing and able to offer for sale at a specific price during a given time period. This concept is key in understanding market dynamics, particularly the relationship between price and the quantity of goods that suppliers are prepared to sell.

When the price of a good rises, suppliers are generally encouraged to increase production due to the potential for greater revenue, leading to a higher quantity supplied. Conversely, if the price falls, the incentive to produce that good diminishes, causing the quantity supplied to decrease. This correlation highlights the principle of supply in economics, where price serves as a major determinant of how much of a good producers are willing to supply.

In contrast, the other choices relate to different concepts within economics. For instance, the total amount of goods purchased refers to quantity demanded, not supplied. Total demand encompasses the overall desire for goods in the market, which does not specifically pertain to the quantity supplied at a given price. Similarly, the maximum price consumers are willing to pay focuses more on consumer behavior and demand rather than the actions of suppliers in offering products for sale. Thus, the correct understanding of quantity supplied is integral to grasping supply dynamics and market equilibrium.