Technological ChangeAn innovation dramatically increases the supply of a commodity sending prices tumbling. Heavily indebted producers of the commodity go bankrupt in large numbers resulting in a financial shock.
Supply Chain DisruptionA conflict causes disruption to the supply of essential materials, parts, components, energy and products to a nation resulting in a severe decline in economic activity and social turmoil.
Political EventsA trade war between two nations escalates and a nation stops supplying an essential component or material to apply pressure to the other side.
|Overview: Supply Shock|
|Definition||A sudden and dramatic change in the supply of a good.|
|Related Concepts||Economic ProblemsProtectionismTrade WarEconomics|