What does a rightward shift of the supply curve indicate?

A rightward shift of the supply curve indicates an increase in supply. This shift suggests that producers are willing and able to supply more of a good or service at each price level. Several factors can lead to such an increase in supply, including improvements in technology, reductions in production costs, or favorable changes in government policies, such as subsidies or reduced regulations.

When the supply curve shifts to the right, it reflects a higher quantity supplied in response to market conditions, which can lead to lower prices for consumers if demand remains constant. Thus, the increase in supply is pivotal for understanding how markets adjust to various economic changes and conditions.