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
jamb 2022economics

The correct answer is D. the price of the commodity increases

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

Previous question Next question