Me always tries to play all hand-drawn games in a Jam - so yours got a place on my list for sure. You did quite some drawings here, the cat trader with his helper I like by far the most! These two guys are really charming!
The points you like to have feedback for:
Is it fun? - Well, I was playing it for quite some time. The tutorial (as other comment was already mentioning) is too small to learn a lot from it. What I got: When the icons of the characters are matching the white ones in a Quest, that's a good. The red matches - bad. But then: Why are some quest icons sometimes white and red the same time? There are more of these "I just don't understand what I am supposed to do" moments taking away the fun. I think it would have felt much more rewarding (and fun) if I would have been more in control of what is happening (characters appear, then disappear, others come up, different sounds are playing - but no real explanation why these things are happening).
Would it make a good mobile game? - Sure. The controls (single click) are perfectly mobile-ready, and so is the flow of the game.
What features would make it better? - See the feedback for "Is it fun?". Introducing a solid mechanic that allows players 1) understand what they have to do, 2) how to get a positive outcome, 3) understand what is happening next, and why - and 4) wrap it in a way that all of this is becoming a challenge - slightly increasing the difficulty of that challenge.