How does the price of other goods affect supply?

The price of other goods indeed influences producers' willingness to sell. When the price of related goods changes, it can lead to a shift in the supply curve for a specific product. For instance, if the price of a substitute good rises, producers may be more inclined to allocate resources toward producing that substitute rather than the original good, thus affecting the supply of the latter. Conversely, if the price of a complementary good decreases, producers might increase the supply of the good in question to meet the anticipated higher demand for the related product. This dynamic emphasizes the interconnectedness of markets and how producers respond to price signals, reflecting their willingness to adjust supply based on the economic environment and comparative profitability.

In contrast, the idea that the price of other goods has no effect is inaccurate, as it overlooks fundamental economic principles about interrelated goods. Saying it decreases overall supply or raises demand attributes a different kind of relationship to prices that doesn't directly address the supply aspect as related to willingness to sell.