A shift to the right of the supply curve indicates what?

A shift to the right of the supply curve indicates an increase in supply. This shift means that at every price level, producers are willing and able to offer more goods or services to the market. Factors that can cause this rightward shift include a decrease in the costs of production, advancements in technology, an increase in the number of suppliers, or favorable government policies such as subsidies.

When supply increases, it often leads to lower equilibrium prices and greater quantities sold. Therefore, a rightward shift in the supply curve is a clear signal of enhanced supply capacity within the market.