Which of the following is a common result of demand shocks?

A common result of demand shocks is price volatility. When there is a sudden and significant change in demand for a commodity, it can lead to rapid fluctuations in prices. For instance, if a natural disaster increases the demand for a particular commodity, such as fuel or food, prices will likely rise sharply as suppliers scramble to meet the new demand. Conversely, if there is a sudden decrease in demand, prices may fall dramatically as suppliers seek to clear excess inventory. This dynamic creates a volatile market environment where prices can change frequently and unpredictably, reflecting the immediate effects of shifts in consumer or market demand.

The other options do not accurately encompass the typical outcomes of demand shocks. Stability in prices typically suggests a balanced or predictable market, which is the opposite of what occurs during a demand shock. Increased production capacity might be a longer-term response to sustained changes in demand rather than an immediate effect of volatility. Consistent market trends imply a level of predictability and reliability that is often disrupted by the sudden nature of demand shocks. Thus, price volatility captures the essence of the market's reaction to these shocks.