How have changes in supply and demand affected the equilibrium price of water?

Equilibrium is the cost at which the amount ordered by the customer is equal to the amount paid by the dealer. As a result, a change in demand or supply will automatically change the cost and quantity of the balance.

When there is an increase in the supply of water while the requirement is constant, the fee tends to fall to a lower cost of balance and an advanced amount of water. When there is a decline in water supply while demand remains constant, charges tend to increase to a higher cost of balance and a lower amount of water.

Similar opposite relationship has to do with the demand for water. However, as demand increases and delivery remains constant, increased demand leads to higher balancing costs and vice versa.

If there is an oversupply of water, the charges will drop. When there is an increased requirement, charges tend to increase. Supply and demand increase and decrease until the price of balance is reached.