SQA National 5 Economics Practice Exam 2025 - Free Economics Practice Questions and Study Guide

Supply in economic terms is best defined as the quantity producers are willing to sell at various prices. This definition highlights the relationship between the price of a good or service and the amount that producers are prepared to bring to the market. When prices rise, producers are usually more incentivized to increase their output since higher prices can lead to greater revenues, reflecting a direct relationship between price and quantity supplied.

This concept is fundamental in understanding how markets operate. It emphasizes the willingness and ability of producers to provide goods, which can fluctuate based on changes in market conditions, price levels, production costs, and other economic factors. This intrinsic link between price and quantity supplied is depicted through the supply curve in economics, which typically slopes upwards.

The other answer choices do not accurately capture the essence of supply. Total revenue generated by producers focuses on the overall income rather than the quantity of goods available for sale. The amount of goods supplied to the market, while somewhat related, lacks the emphasis on the varying prices that influence suppliers' willingness to sell. Similarly, total demand for goods pertains to consumer behavior rather than supplier behavior and does not define supply at all.