Question

think of a relevent example of how a change in the market has shifted either the supply or demand of a good. how did this change affect the market equilibrium for that good or service?​

Answer 1

Market equilibrium condition can change due to any modification or fluctuation in the demand or supply level in the market.There are several demand side and supply side factors or attributes that can impel such change in the market equilibrium.

Explanation:

• Market equilibrium is generally characterized as a market outcome in Economics,in which the overall demand in the market for any product or service is identical or equivalent to its overall supply level.The price and quantity which correspond to market equilibrium are known as equilibrium price and equilibrium quantity respectively.
• Now,one of the demand side factor or component that can change the overall demand for any product or service in the market is consumer or buyer income.
• Suppose an increase in the consumer or buyer income level will expectedly lead to higher consumer demand for any normal good or service in the market.
• The higher consumer demand due to a rise in consumer/buyer income  will be reflected in rightward or upward shift of the demand curve for the concerned product or service in the demand and supply graphical representation.
• An increase in consumer demand for the product or service or a rightward or upward shift of the demand curve of the product/service will cause the equilibrium quantity to increase from its previous or original position.
• An increase in consumer demand and a rightward or upward shift of the demand curve will cause the equilibrium price of the concerned commodity or service to increase in the market.
• Therefore,an increase in the consumer or buyer income will lead to an increase in consumer demand for any normal good or service reflected by an upward or rightward shift of the demand curve for that product or service which consequently lead to an increase in both equilibrium price and quantity of the concerned product or service in the market.