Supply is the quantity of goods firms are willing and able to produce at various prices in a given period. Distinction: Desire to produce (capacity) vs. Ability (willingness to sell given returns). Positive relationship with price: Higher prices incentivize production. Supply curve slopes upward (right-sloping). Reasons for positive relationship: Profit motive (higher price = higher profit per unit), Cost coverage (higher price justifies higher production despite rising costs). Supply factors: Prices of inputs (higher costs reduce supply), Technology (improved technology increases supply), Number of producers (more firms increase market supply), Expectations (anticipated price changes affect current supply), Taxes and subsidies (taxes reduce supply, subsidies increase). Determinants: Same as demand but work differently—all shift supply curve left or right. Examples: Agricultural supply depends on monsoon, input prices; manufacturing supply depends on technology, labor costs. ICAI focus: Supply basics, distinction from demand, factors influencing supply. Exam tip: Supply has positive slope (opposite of demand); higher price increases quantity supplied.