Quantity supplied represents the number of goods and services available at a given price, generally the market price. Changes in supply from changes in price are called elasticity. If the supply does not change when prices change, it is inelastic. Prices can change due to regulations, market forces, or because of price ceilings or floors. When prices increase, suppliers will provide more of a good at a higher price in order to maximize their profits. As demand dries up due to higher prices, the price falls. The result is that suppliers are less willing to create the same volume of goods at a lower price.
