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Glossary
Definition of Supply

Economists define supply as the quantity of a good or service that producers are willing and able to offer for sale at each possible price during a certain time period. So, there are two components of supply: a supplier's willingness to produce and ability to produce and sell.

Let's consider Corvettes and sauerkraut from the supply side, or the producer's viewpoint, and consider you as the producer.

Are you willing to produce Corvettes? Yes, let's say you are.

Are you able to produce and sell Corvettes? No, you probably don't know how to produce Corvettes.

So, even though you may be willing, if you do not have the ability, you cannot supply Corvettes.

Likewise, do you have the ability to produce and sell sauerkraut? Yes, let's say you do. But, do you have the willingness to produce sauerkraut? No, probably not. I'm guessing you aren't fond of the smelly stuff.

So, even though you have the ability, if you do not have the willingness, you will not supply sauerkraut.