Question

Given a normal market demand curve for leather wallets and purses, if people find that backpacks are a better option, then there is an increase in demand for leather wallets and purses. there is a decrease in demand for leather wallets and purses. there is a decrease in the quantity demanded for leather wallets and purses. there is an increase in the quantity demanded for leather wallets and purses. cannot be determined from information given.

Answer 1

When demand shifts, the entire demand curve shifts in the same direction, either to the right or to the left, indicating an increase or decrease in demand respectively.

Step-by-step explanation:

When an increase in demand occurs, quantity demanded would increase at every price level, so the entire demand curve would shift to the right. When demand decreases, the entire demand curve would shift to the left, so there would be fewer quantity demanded at each price level. A shift of the demand curve to the left indicates a decrease in demand, while a shift to the right indicates an increase in demand across all price points.

Answer 2

If in a normal market people discover backpacks as a better alternative to leather wallets and purses then the demand for backpacks will rise while the demand for leather purses and wallets will decrease. While a small market may remain for leather wallets and purses the quantity of goods demanded will follow the lead of the consumers pockets.