The response of output following a natural disaster includes
A) an increase in output demand and an increase in output supply.
B) an increase in output demand and a decrease in output supply.
C) a decrease in output demand and an increase in output supply.
D) a decrease in output demand and a decrease in output supply.

Question

Quizplus · Accepted Answer

Following a natural disaster, there is usually an initial increase in demand for certain goods and services such as food, water, and construction materials. However, the supply of these goods and services may be disrupted or reduced due to damage to infrastructure or the inability of businesses to operate. This results in a decrease in output supply, leading to increased prices and shortages. Therefore, the correct response is an increase in output demand and a decrease in output supply (option B).

The Response of Output Following a Natural Disaster Includes