Final answer:
Factors that can cause the supply curve to shift out include a decrease in production costs, government subsidies, improvements in technology, entry of new producers, and favorable regulatory changes.
Step-by-step explanation:
The question asks about conditions that would cause a supply curve to shift outward (to the right). An outward shift in the supply curve suggests an increase in supply. There are several factors that could result in such a shift:
- A decrease in production costs, such as cheaper raw materials or advanced technology, makes production more efficient.
- Subsidies from the government can lower production costs, increasing the incentive for producers to supply more.
- An improvement in technology that makes production more efficient.
- Entry of new producers into the market increases overall market supply.
- Favorable changes in regulations or a reduction in trade barriers can ease production and increase supply.
These factors can lead to a lower cost of production, improved production capabilities, or a more conducive business environment, thereby encouraging producers to increase their output.