Answer:
In a market economy, prices are established by the equilibrium of demand and supply
Explanation:
The price for a given product and/or service is set by the equilibrium of Demand and Supply.
On the demand-supply graph, the point where demand equals supply is referred to as equilibrium price (i.e. balance price).
Any alterations on the demand-supply graph will lead to the demand and/or supply being increased or decreased and this will definitely affects the price of that good and/or service.
and the price will definitely increase.
