A rightward shift in the supply curve of a commodity is brought about by an increase in?

Step 1: Analyze the question The question asks what causes a rightward shift of the supply curve. A rightward shift means an increase in supply, so producers supply more at every price.

Step 2: Explain the concept Two things are easy to mix up:

• Movement along the curve: caused only by a change in the commodity's own price (extension or contraction of supply).
• Shift of the curve: caused by other factors, called determinants of supply. These include: • Technology • Cost of production (input prices) • Taxes and subsidies • Number of sellers • Weather (for agricultural goods)

Step 3: Evaluate each option

• A. Level of technology: Better technology makes production cheaper and more efficient, so producers can supply more at each price. The supply curve shifts right. ✔
• B. Price of the commodity: This only causes a movement along the same supply curve, not a shift. ✘
• C. Cost of production: An increase in cost reduces profit, so supply falls and the curve shifts left. ✘
• D. Taxation: An increase in tax raises costs, so supply falls and the curve shifts left. ✘

Step 4: Answer The correct option is **A.

Tip: Remember "own price = move, everything else = shift." Anything that makes production cheaper or easier (technology, subsidies, lower input costs) shifts supply right. Anything that makes production costlier (higher taxes, higher wages) shifts supply left.