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

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.