Demand shock

Demand shock

An event that affects the demand for goods and services in an economy.

Demand Shock

Any sudden event that dramatically but (usually) temporarily increases or decreases demand for one or more goods or services. The event may result from government intervention, such as a change in money supply, or may be a random occurrence in the market. For example, a company announcing that it is discontinuing a certain product may see an increase in demand for that product because people want to buy it while they can. This results in an increase in price for that product. However, if that company decides not to discontinue the brand, demand will likely taper off, resulting in a return to equilibrium.
Mentioned in ?
References in periodicals archive ?
Consider the example of an adverse demand shock, shown on the right-hand side - that is, investors will want to sell bonds as the economic outlook improves and expectations of higher rates mount.
To better understand export diversification in Lebanon, while taking into account highly sophisticated domains of production and an absence of a policy-driven structural change, the literature has attributed changes in sophistication levels in different countries to two key causes: A productivity shock or a demand shock.
During the initial phase of the crisis, in 2008-2009, companies have mainly suffered from the adverse effects of negative demand shock .
If oil and stock prices move in the same direction, QNB interprets this as being caused by a demand shock.
Second, we find that in the presence of a positive technology shock on the final output sector and a positive demand shock on preferences, RES production growth is higher with an energy policy intervention based on a stock of public capital than with a monetary subsidy.
We include the BDI in the model to determine whether the demand curve for oil shifts because of a global demand shock or an oil-specific demand shock.
The restrictions applied are as general as possible--that prices and quantities move in the same direction following a demand shock and inversely following a supply shock.
It prefers being an informed Stackelberg follower to being an uninformed simultaneous move Cournot player when the variance of the demand shock is high, and Stackelberg competition therefore arises endogenously.
r,t]]) we assume five exogenous shocks that contemporaneously affects endogenous variables demand shock ([[epsilon].
A rise in the policy interest rate, for example, will be interpreted partially as a central bank attempt to offset a projected positive demand shock and partially as an attempt to contract real output to offset a positive cost shock.
One does not have to be a hardcore Keynesian to wonder what the effect would be of such a demand shock on the U.
Aspachs-Bracons and Rabanal study the response of the Spanish economy in a currency union to fluctuations in housing prices and residential investment: a decrease in interest rates and a positive housing demand shock lead to a rise in both final consumption and residential investment.

Full browser ?