Demand Shocks | Microeconomics

I analyze the effects of positive and negative demand shocks in the diagram on the market equilibrium. A positive demand shock is conceptualized as a cash handout to households and a negative demand shock is illustrated in terms of the global economic and financial crisis in 2007-2009. I show how these shocks affect the demand curve, the price level, and the equilibrium quantity.

For the properties and derivations of market demand, market supply, and the market equilibrium, please refer to the previous lectures:

For the effects of changes in supply on the market equilibrium, please see the following videos of this lecture series:

For the playlist on Basic Economic Concepts, please visit

[KlausPrettner]

For the properties and derivations of market demand, market supply, and the market equilibrium, please refer to the previous lectures:


For the effects of changes in supply on the market equilibrium, please see the next videos of this lecture series:


For the playlist on Basic Economic Concepts, please visit