It is an unexpected traumatic event such as death in the family or loss of land and livestock which can be caused by a catastrophic weather event or other unexpected phenomenon. Price shocks occur when the price of commodity changes dramatically due to changes in local or global supply and demand, affecting the livelihood of households dependent on this commodity either for income or caloric intake. Economic shocks can occur at the micro, meso, and macro levels and can have long-term consequences for the economic well-being of actors at each level.
