The Following Table Shows the Demand and Supply of Backpacks

question 74

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. $\begin{array}{|c|c|c|}\hline \text { Price of Backpack }(\$) & \text { Quantity demanded per year } & \text { Quantity supplied per year } \\\hline 210 & 800 & 5100 \\\hline 180 & 2000 & 4300 \\\hline 130 & 3000 & 3000 \\\hline 100 & 5000 & 1200 \\\hline 70 & 6000 & 800 \\\hline 50 & 8000 & 500 \\\hline\end{array}$

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Definitions:

False Belief

An erroneous understanding or conviction about something that does not align with factual reality.

Mental Processes

Cognitive activities and functions of the mind such as thinking, understanding, learning, and remembering.

Autobiographical Memory

The memory system consisting of episodes recollected from an individual's life, based on a combination of episodic (personal experiences) and semantic (general knowledge and facts) memory.

Recognition Memory

A form of memory that involves the ability to recognize previously encountered events, objects, or people.