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

Step 1: Analyze the question A rightward shift of the supply curve means an increase in supply: producers are willing to supply more at every price. We need the option that lowers production costs or otherwise raises supply at each price level.

Step 2: The concept Supply shifts because of changes in the determinants of supply (not the price of the good itself):

• Cost of production (input prices, taxes, subsidies)
• Technology
• Number of producers
• Weather (for agriculture)
• Prices of related goods
• Producers' expectations

A change in the price of the good itself only causes a movement along the same supply curve (extension or contraction), not a shift.

Step 3: Evaluate each option

• A. Increase in taxes on inputs: This raises production costs, so producers supply less at each price. The curve shifts left. Wrong.
• B. Government increases subsidies: A subsidy lowers the cost of production, so producers can supply more at each price. The curve shifts right. Correct.
• C. Rural-urban migration is encouraged: This pulls labour away from farming and local production, which tends to reduce supply of locally-produced goods (especially agricultural ones). It would not clearly shift the curve right. Wrong.
• D. Price of the commodity increases: This causes an extension of supply, a movement along the same curve, not a shift. Wrong.

Step 4: Answer

Tip: Remember "price of the good itself = movement along the curve; anything else = shift." For supply, anything that lowers costs (subsidies, better technology, cheaper inputs) shifts the curve right, and anything that raises costs (taxes) shifts it left.