A negative demand shock occurs when large numbers of consumers unexpectedly reduce their
purchases of goods and services.

Question

Quizplus · Accepted Answer

A negative demand shock is a sudden decrease in consumer demand that leads to a reduction in the quantity of goods and services purchased. It can be caused by various factors such as economic downturns, changes in consumer preferences or habits, or external events such as natural disasters or pandemics.

A Negative Demand Shock Occurs When Large Numbers of Consumers