When more income is earned the demand for goods will shift to the right as more goods and higher levels of goods are demanded across the board. The budget line follows the law of demand as it shifts to the right showing an Increase In the quantity demanded of Items. This should not be confused with movement along the curve which Is caused by a change in price of a specific good. The purpose of a market system To allow government to control what is sold. To set constraints between buyers and sellers. To bring buyers and sellers Into contact * d.To allow an organization to set prices In relation to their products. Rejoinder: In the market system an exchange of money for goods and or services takes place. A true market system sets the price through barter where the goods and services sell for the best price offered by the buyers creating equilibrium. For this exchange to take place the market serves as a meeting place for buyers and sellers. If the organization sets its prices there may not be market equilibrium and that can result in either a shortage or a surplus.
