The Following Table Shows the Demand and Supply of Backpacks

question 152

Essay

The following table shows the demand and supply of backpacks made by a Melbourne designer whose products sell exclusively to a youth market. Graph both the demand and supply curves and label the equilibrium price and quantity. Now assume that a famous celebrity starts wearing the backpack everywhere, making it very popular with young people. Young people are now willing to purchase 300 more backpacks per year at every price. Show this change on your graph and explain what has happened to equilibrium price and quantity as a result.

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Definitions:

Republican Party

A major political party in the United States that is associated with conservative and right-leaning policies.

Democratic Party

One of the two major political parties in the United States, traditionally associated with progressive and liberal policies.

Whig Party

A political party active in the middle of the 19th century in the United States, which was opposed to the policies of the Democratic Party and advocated for a more active role of the federal government, especially in supporting a market economy.

Know-Nothings

A political movement in the mid-19th century United States that was anti-immigrant and anti-Catholic, advocating for strict immigration laws.