During 2004 China increased its use of global oil by 40%.This followed a 100% increase during the previous 5 years.How do economists refer to this kind of economic event?
A) Demand shock
B) Equilibrium event
C) Expanding commodity event
D) Supply shock

Question

Quizplus · Accepted Answer

A demand shock refers to a sudden and significant change in the quantity of a good or service demanded by consumers. In this case, the 40% increase in China's use of global oil in 2004, following a 100% increase in the previous five years, represents a demand shock as it indicates a significant change in the quantity of oil demanded by China.

During 2004 China Increased Its Use of Global Oil by 40%.This