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

Understanding the Statement

1. Definition of Supply Curve: The supply curve represents the relationship between the price of a good and the quantity supplied. A rightward shift indicates an increase in supply at all price levels.

2. Impact of Production Costs: A decrease in production costs means that it is cheaper for producers to create goods. Producers can increase output because it becomes more profitable to do so, even at lower prices.

Conclusion

Yes, the statement is True. A decrease in production costs typically leads to an increase in supply, which results in a rightward shift of the supply curve. This shift reflects that sellers are willing to offer more products at various price points due to reduced costs.