Firms adjust to demand changes at different speeds, depending on whether the shock is positive or negative. This study uses data from individual firms to measure how quickly they respond to these shocks. By looking at both quantitative and qualitative data on capacity utilization, the researchers were able to identify the impact of these shocks. The key finding is that firms adjust faster to positive demand shocks compared to negative ones. This distinction is important for understanding how businesses react to economic changes and has implications for monetary policy decisions.