How does an increase in real wages typically affect the purchasing power of consumers in relation to market equilibrium and exports?

When real wages increase, it means that workers are earning more money in terms of what that money can buy. This rise in income usually leads to higher purchasing power for consumers, allowing them to buy more goods and services. As consumers spend more, overall demand in the market can increase, which may push prices up and affect market equilibrium, where supply meets demand. For example, if people have more money and buy more cars, car manufacturers may need to produce more, potentially leading to higher prices if supply doesn't keep up. Additionally, as domestic consumers buy more, there may be less focus on exports, as local demand fills the market, which can influence international trade dynamics.