Artificial demand

Vehicles of creating artificial demand can include mass media advertising, which can create demand for goods, services, political policies or platforms. Good mass media advertising can stimulate consumers' appetites and attract spending. With the shortening of product lifecycles, companies in many industries put a lot of resources into advertising to create a huge initial demand for a product before postlaunch. Advertising influences demand by creating desire for a product or brand in consumers' minds. == Examples ==

In a short squeeze, investors anticipate a fall in the share price and short the share. Meanwhile, retail investors purchase the limited supply, immediately increasing the demand which in turn sharply increases the price of the asset. This lures traders who entered into the original short position to purchase addition shares in an attempt to mitigate their losses, which creates additional demand and increases the share price further. Eventually, the share price will fall back to its market equilibrium price. ==See also==