I have an Intro to Microeconomics midterm coming up on Monday, so to prepare myself I'm using a flashcard program to quiz myself on key terms and stuff over the next couple days. I've gotten to Market Dynamics, which I know is going to be a big part of the test so I'm trying to come up with enough questions to cover all the different things that cause changes in the market. Don't worry if you're not that familiar with Econ, I'll provide a list of all the different causes and effects, and I'm more than happy to answer any question about terms or explain how certain cause and effects work. I just need help coming up with question to put on flashcards. Bonus points for creativity/nerdiness/weirdness/funny. Please keep it simple, one or two causes.
I've already come up with two (I'll leave the answers off, in case you guys want to try to figure it out):
1) There's a news report that shoes give you cancer. If the market starts at equilibrium, what will happen in the shoes market?
2) There's speculation that energy drinks will appreciate in value with age. If the market starts at equilibrium, what will happen in the energy drink market?
TL;DR-- I need help coming up with funny questions on Market Dynamics. I've provided a list of all the different cause-and-effects, and I'm more than happy to answer any questions.
I've already come up with two (I'll leave the answers off, in case you guys want to try to figure it out):
1) There's a news report that shoes give you cancer. If the market starts at equilibrium, what will happen in the shoes market?
2) There's speculation that energy drinks will appreciate in value with age. If the market starts at equilibrium, what will happen in the energy drink market?
Demand:
Price of a substitute rises, Demand for the original good increases; price of a substitute falls, Demand for the original good decreases.
Price of a complement falls, Demand for the original good increases; price of a complement rises, Demand for the original good decreases.
Income level rises, Demand for a Normal Good increases; income level falls, Demand for a Normal Good decreases.
Income level falls, Demand for an Inferior Good increases; income level rises, Demand for an Inferior Good decreases.
When tastes favor a good, Demand for the good increases; when tastes change against a good, Demand for the good decreases.
When the price is expected to rise in the future, Demand for the good increases today; when the price is expected to fall in the future, Demand for the good decreases today.
When the number of consumers rises, Market Demand for the good increases; when the number of consumers falls, Market Demand for the good falls.
Supply
When the price of an input falls, Supply of the good increases; when the price of an input rises, Supply of the good decreases
When the price of a substitute in production falls, Supply of the original good increases; When the price of a substitute in production rises, Supply of the original good decreases.
When the price of a complement in production rises, Supply of the original good increases; When the price of a complement in production falls, Supply of the original good decreases.
When technology used in production is improved, Supply of the good increases; when the best technology used in production is no longer available, Supply of the good decreases.
When the price is expected to fall in the future, Supply of the good increases; when the price is expected to rise in the future, Supply of the good decreases.
When the number of producers rises, Market Supply of the good is increased; when the number of producers falls, Market Supply of the good is decreased.
Price of a substitute rises, Demand for the original good increases; price of a substitute falls, Demand for the original good decreases.
Price of a complement falls, Demand for the original good increases; price of a complement rises, Demand for the original good decreases.
Income level rises, Demand for a Normal Good increases; income level falls, Demand for a Normal Good decreases.
Income level falls, Demand for an Inferior Good increases; income level rises, Demand for an Inferior Good decreases.
When tastes favor a good, Demand for the good increases; when tastes change against a good, Demand for the good decreases.
When the price is expected to rise in the future, Demand for the good increases today; when the price is expected to fall in the future, Demand for the good decreases today.
When the number of consumers rises, Market Demand for the good increases; when the number of consumers falls, Market Demand for the good falls.
Supply
When the price of an input falls, Supply of the good increases; when the price of an input rises, Supply of the good decreases
When the price of a substitute in production falls, Supply of the original good increases; When the price of a substitute in production rises, Supply of the original good decreases.
When the price of a complement in production rises, Supply of the original good increases; When the price of a complement in production falls, Supply of the original good decreases.
When technology used in production is improved, Supply of the good increases; when the best technology used in production is no longer available, Supply of the good decreases.
When the price is expected to fall in the future, Supply of the good increases; when the price is expected to rise in the future, Supply of the good decreases.
When the number of producers rises, Market Supply of the good is increased; when the number of producers falls, Market Supply of the good is decreased.
TL;DR-- I need help coming up with funny questions on Market Dynamics. I've provided a list of all the different cause-and-effects, and I'm more than happy to answer any questions.