Which of the following is an example of a demand shock?

Question

Multiple Choice
Hurricane Helene knocks out oil drilling platforms in the Gulf of Mexico.
Consumers become worried about job loss and buy fewer goods and services than expected.
Floods in the Midwest destroy crops.
The federal government unexpectedly requires automobile producers to raise fuel efficiency standards.

Answer 1

An example of a demand shock from the options provided is:

Consumers become worried about job loss and buy fewer goods and services than expected.

This statement reflects a sudden change in consumer behavior that reduces overall demand in the economy. The other options relate more to supply shocks or external events that impact production rather than changes in consumer demand.