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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The Answer of 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.

The Following Table Shows the Demand and Supply of Backpacks