Which of the following would lead to an increase in supply by shifting the supply curve to the right?

When considering what factors can lead to an increase in supply by shifting the supply curve to the right, government subsidies play a crucial role. Subsidies are financial assistance provided by the government to encourage production or consumption. When firms receive subsidies, their production costs effectively decrease. This reduction in costs makes it financially viable for producers to supply more goods at any given price level. As a result, the overall supply in the market increases, leading to a rightward shift of the supply curve.

In contrast, an increase in production costs would typically lead to a leftward shift in the supply curve, as higher costs make it less attractive for firms to produce the same quantity of goods. A decrease in the number of firms in the market would also reduce overall supply, potentially shifting the curve to the left. Higher indirect taxes would increase costs for producers, resulting in a contraction of supply, further shifting the curve leftward rather than rightward. Thus, government subsidies distinctly enable an increase in supply by making it easier for producers to bring more goods to market.