The Response of Output Following a Natural Disaster Includes

question 1

Multiple Choice

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.
• E) only a decrease in output demand.

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Definitions:

Substitution

The economic principle whereby consumers replace more expensive items with less costly alternatives, or firms use different inputs in their production process.

Mangoes

A tropical stone fruit with a sweet yellowish or orangish flesh, known for its nutritional value and distinct flavor.

Indifference Curve

A graph that represents combinations of goods among which a consumer is indifferent, showing the same level of satisfaction to the consumer.

Utility

A measure of satisfaction, usefulness, or pleasure derived from consuming goods and services.