Which of the following events would cause the supply curve to shift to the right?

• A. An increase in the price of the good
• B. A decrease in the cost of production inputs
• C. A decrease in the number of sellers in the market
• D. The imposition of a new tax on producers

Answer: (B)

Verified step by step guidance

1. Understand that a supply curve shows the relationship between the price of a good and the quantity supplied, holding other factors constant.
2. Recall that a shift to the right in the supply curve means an increase in supply at every price level, not just a movement along the curve.
3. Identify factors that cause the supply curve to shift, such as changes in production costs, technology, number of sellers, and taxes.
4. Analyze each option: an increase in the price of the good causes movement along the supply curve, not a shift; a decrease in production input costs lowers costs, encouraging more supply and shifting the curve right; a decrease in sellers reduces supply, shifting the curve left; a new tax increases costs, shifting the curve left.
5. Conclude that the event causing the supply curve to shift right is a decrease in the cost of production inputs because it makes production cheaper and increases supply.