Reference no: EM131577849

A shift in demand curve to the right results from an increase in people's disposable income (Dick, 2012). An increase in income leads to a higher purchasing power of consumers hence there is an increase in demand for the low-calorie microwavable food (Marquez, 2013). Another factor shifting the demand curve to the right is a direct relationship that exists between quantity demanded and tastes and preference of consumers (Mark, 2012) .If consumer's taste and preferences for a commodity demand increase, the demand curve will shift to the right. Furthermore, future consumer expectations for example, the expectation of a rise in the price of a commodity in the future will lead to more of current consumption this will shift the demand curve of the current consumption to the right.

A leftward shift in demand curve results from the presence of a compliment such as microwave ovens. In the case of a rise in the price of ovens, the demand for ovens will fall thus leading to a shift in demand for the low-calorie microwavable food. A decrease in people's income also leads to a shift in demand to the left (Dick, 2012).

Among the factors that shifts the supply curve to the right include; technological improvements such as advanced food processing, availability of raw materials and government interventions such as tax cuts and subsidies. Improvement in technology such as mechanization leads to increased production and hence the supply curve shifts to the right (Marquez, 2013).

An increase in taxes, decrease in availability of labor and an increase in the price of labor leads to shifting of the curve to the left (Dick, 2012). A decrease in availability of labor will decrease production, and hence supply is also reduced and hence a shift to the left. The increase in taxes leads to added costs and hence producers will produce less and hence decreased supply (Marquez, 2013).