In economics, a sudden event that changes the available quantity of a product is called a supply shock.
A supply shock shifts the supply curve by changing production conditions. A negative shock reduces supply and may raise prices, while a positive shock expands supply and may lower prices. Examples include wars, harvest failures, energy disruptions, new technology, and abrupt changes in input costs.
The term does not specify whether the shock is temporary or permanent. Its effects depend on the industry, the event’s duration, inventories, international trade, and how readily consumers can substitute other products.
A supply shock differs from a demand shock, which changes consumers’ willingness or ability to buy. Economists often study both because the same price increase can arise from reduced supply, increased demand, or a combination of the two.