Demand/Supply
A drought destroys 1/3 of the country's wheat crop.
Your model is for wheat.
Supply decreases
The cost of smartphones rises. What happens to demand for phone cases and chargers?
Your model is for phone cases.
Complements - demand decrease.
A new brand of cereal raises its price by $1 and loses half its customers.
Your model is for cereal.
Elastic demand
The use of home gym equipment spikes because of COVID-19, but many hardware industries enter the market for barbells and dumbbells. COVID is the bigger effect.
Your model is for home gym equipment.
Increase in demand, increase in supply - price increases, quantity increases
A price floor is introduced for milk to protect dairy farmers. The equilibrium price for milk is $2.50, and the floored price is $3.00.
Your model is for milk.
Surplus
The cost of tomatoes drops significantly.
Your model is for Olive Garden's spaghetti.
Supply increases
Netflix raises its monthly fee. What happens to demand for Hulu?
Your model is for Hulu.
Substitutes - demand increases
Concert ticket prices double after a viral hit—but fans choose to stream the music instead.
Your model is for concert tickets.
Elastic demand
A popular influencer's diet increases demand for blueberries, while a frost damages crops across the region. The frost is the bigger effect.
Your model is for blueberries.
Increase in demand, decrease in supply - price increases, quantity decreases
The government passes a rent-control policy in a major city. Equilibrium price for rent is $1000, the new policy is set to $700.
Your model is for rent.
Shortage
A new study that came out is all over social media saying that coffee improves your memory.
Your model is for Folger's Coffee
Demand increases
Movie theater ticket prices increase. What happens to demand for popcorn and soda at the theater?
Your model is for the popcorn and soda at the theater.
Complements - demand decreases
A city raises water rates, but household usage remains steady.
Your model is for water.
Inelastic demand
Hulu lowers its subscription prices, while internet providers offer faster, cheaper service. Hulu's price change is the bigger effect.
Your model is for Paramount+.
Decrease in demand, increase in supply - price decreases, quantity decreases.
The government sets a minimum wage for fast food workers. The equilibrium price is $7.00, and the new minimum wage is $8.50.
Your model is for labor in the fast food market.
Surplus
The government subsidizes the production of solar panels.
Your models is for solar panels.
Supply increases
A popular video game console drops in price, but game prices stay the same.
Your model is for the games.
Complements - demand increases
A clothing brand notices rising prices for hoodies and immediately increases production using existing fabric in stock.
Your model is for hoodies.
Elastic supply
Gas prices increase. New technology makes it easier to produce lithium batteries. The new tech causes the bigger effect.
Your model is for electric scooters.
Increase in demand, increase in supply - price decreases, quantity increases
The government mandates a minimum price for concert tickets to prevent scalping. The equilibrium price is $75, and the mandated price is $50.
Your model is for concert tickets.
Equilibrium
The price of ink rises.
Your model is for printers.
Demand decreases
A new law bans flavored vape products. What happens to demand for cigarettes and nicotine patches?
Your model is for cigarettes.
Substitutes - demand increases
The price of diamonds rises sharply, but mining output remains unchanged for months.
Your model is for diamonds.
Inelastic supply
A denim jacket is associated with a scandalized public figure, convicted of a heinous crime. Textile production prices rise due to new child labor laws in Asia. The public figure has the greater effect.
Your model is for the denim jacket.
Decrease in demand, decrease in supply - price decreases, quantity demanded decreases.
A price floor is set for wheat to support agricultural income. The equilibrium price for wheat is $3, the floored price is $5. Does this cause a shortage or surplus? What happens to barley as a result?
Surplus, barley demand increases.