The supply curve of a locally-produced good may shift to the right if?

A. there is an increase in taxes on inputs
B. government increases subsidies
C. rural-urban migration is encouraged
D. the price of the commodity increases

Correct Answer:

Option D – the price of the commodity increases

Explanation

One of the law of supply is, as price increases , the quantity demanded also increase due to the posiive relationship. Therefore, an increase in price will shift the supply curve to the right.