The supply curve of a locally-produced good may shift to the right if
ECONOMICS
JAMB 2022
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: 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 positive relationship. Therefore, an increase in price will shift the supply curve to the right.
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