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 B
Explanation
When the government increases subsidies for a locally-produced good, it effectively lowers production costs for producers. This encourages them to supply more of the good at any given price, causing the supply curve to shift to the right.
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