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Supply shocks are unexpected events that suddenly change commodity or service prices. A demand side shocks affect demand in one or more countries and may include an unexpected change in interest rates. Supply side shocks affect prices and costs in countries and can include a construction or capital investment boom.

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Define Market Price?

The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side and/or demand side can cause the market price for a good or service to be re-evaluated.


What is the difference between supply side gaps and demand side gaps?

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When you shock supplies


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What happens if there is not enough supply for the demand?

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Sentence with supply and demand?

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