Quantity Supplied

Definition

Quantity supplied refers to the specific amount of a good or service that producers are willing and able to sell at a particular price during a given time period.

Related terms

Law of Supply: States that there is a direct relationship between price and quantity supplied; as price increases, quantity supplied also increases.

Producer Surplus: The difference between what producers receive from selling goods or services and their minimum acceptable price.

Elasticity of Supply: Measures how responsive suppliers are to changes in price by examining the percentage change in quantity supplied compared to percentage change in price.