Use the theory of the market (i.e.
First scenario-
We can see three people in the picture, one is selling helmets at$25, the second person is going somewhere and is thinking if he should buy a helmet or not, the third person is a thief who keeps an eye on citizens in order to rob them.
Seems like the town has a thief who uses baseball bats to hit the citizens to rob them so one without a helmet has more chances of being robbed. The person selling the helmet is also wearing one. The helmet is overpriced as you can see the price of a helmet means the town has lots of demand for a helmet for protection. So you can have two types of customers, one who buys a helmet to play baseball and one buying for protection from thieves so there is increased demand in the town for the helmet. This is why the price of the helmet is so high.
As you can see in the diagram, Increase in demand shifted demand from demand to demand 1. Due to an increase in demand, price increased from P to P1 and quantity increased from Q to Q1. There is an expansion in supply from Q to Q1 that is why sellers have lots of supply of helmets.
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