A decrease in the costs of production causes the shift in the supply curve to the right.Select one:TrueFalse

The statement is True.

Explanation:

When the costs of production decrease, producers can produce goods at lower expenses. This reduction in costs typically encourages them to increase their output because they can maintain or even increase profit margins while charging the same prices. As a result, the overall supply in the market increases.

In graphical terms, this change is represented by a rightward shift of the supply curve. A rightward shift indicates that at every price level, the quantity supplied is greater than it was before, meaning producers are willing and able to supply more of the good or service.

It's important to note that other factors can also influence the supply curve, including technology improvements, changes in the number of suppliers, and alterations in regulatory environments. However, in the context of the given statement, a decrease in production costs unequivocally leads to an increase in supply, thus shifting the supply curve to the right.