Question: ![enter image description here](https://i.stack.imgur.com/MW1Mt.jpg)

This problem has bothered me for quite some time and I can't solve it. I have even tried to make a construction, but it sometimes tips to the left and sometimes tips to the right :).

When we submerge the body in the water the water pushes it up. That is an action. At the same time the body pushes water down. That is a reaction. So the balance should be maintained.

But, since the water level rises the hydrostatic pressure on the bottom is greater so the right side should go down.

There is another similar problem but it's not the same. 

Please help.

Answer: 
The balance will be maintained because there is no EXTERNAL force applied on left or right side. This is because of the same reason you can't push a car while sitting in it!
If you consider everything put in the right side of balance scale as one system, only the internal forces are changed which will not affect the balance. 
No external force is applied and hence the balance will be maintained.