what is a demand shock 
a demand shock is a sudden unexpected event that dramatically increases or decreases demand for a product or service usually temporarily a positive demand shock is a sudden increase in demand while a negative demand shock is a decrease in demand either shock will have an effect on the prices of the product or service a demand shock may be contrasted with a supply shock which is a sudden change in the supply of a product or service that causes an observable economic effect supply and demand shocks are examples of economic shocks understanding a demand shocka demand shock is a large but transitory disruption of the market price for a product or service caused by an unexpected event that changes the perception and demand an earthquake a terrorist event a technological advance and a government stimulus program can all cause a demand shock so can a negative review a product recall or a surprising news event 