Read the passage carefully and answer the question based on the passage:

Demand and Technology

Consider the case of a local coffee shop that faces rising demand for its products. In response to the increase in demand, the shop owner decided to increase the price of a cup of coffee. As a result, suppliers in the market respond by increasing their supply, hoping to capitalize on the higher price. If the coffee shop invests in a new espresso machine that makes coffee more efficiently, the cost of producing each cup decreases. This leads to an increase in supply and sell more coffee at the same or lower price, benefiting both the producers and consumers. This cost-reduction technology is helpful in the context of the real world.

In Microeconomics, what does supply refer to?

The total amount of goods and services which producers are willing to sell at different price.

The correct answer is Option (2) → The total amount of goods and services which producers are willing to sell at different price.

Supply, in microeconomics, represents the behavior of producers. It's not just about what can be produced, but what producers are willing and able to offer for sale in the market at various price points within a given period. This willingness is driven by factors like production costs, technology, and, crucially, the market price they can receive for their goods or services. The higher the price, generally, the more a producer is willing to supply, assuming other factors remain constant. This positive relationship between price and quantity supplied is known as the Law of Supply.