If buyer's incomes in the market for good x increase then we can expect the market equilibrium price of x to

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Nichols

Business

6 February, 08:05

If buyer's incomes in the market for good x increase then we can expect the market equilibrium price of x to

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Simeon Hutchinson · Answer 1

Market equilibrium in the market happens when the supply is equal to the demand that there will be no price change.

If there is an increase in demand for good x, price will increase. Increase in demand will create a shortage in the supply. To attain market equilibrium, suppliers will continue to increase the price and supply of good x. As the price increases, the demand will be lesser. Market equilibrium price of good x is achieved when the supply is equal to demand.