What term is used to describe the willingness of producers to sell their goods at varying price levels?

The correct term that describes the willingness of producers to sell their goods at varying price levels is "elasticity of supply." This concept refers to the responsiveness of the quantity supplied to changes in price. When the price of a good increases, producers are often more willing to supply more of that good because it may yield higher revenue and cover their costs. Conversely, if prices fall, producers are likely to reduce output accordingly.

Elasticity of supply is crucial for understanding how different factors influence production decisions and the overall functioning of the market. It encompasses the idea that supply is not static; producers will adjust their level of production based on price changes, reflecting their willingness and ability to bring goods to the market.

In contrast, the other terms presented focus on different aspects of supply and market dynamics. Storage capacity refers to the physical ability to hold inventory, the supply curve represents the relationship between price and quantity supplied on a graph, and market equilibrium describes the point where supply equals demand. While all of these concepts are related to supply and production, they do not specifically capture the notion of responsiveness in terms of price changes, which is central to elasticity.