Forest fires have inflicted significant damage to a region, leaving several paper mills destroyed in their wake. As such, the su

Question

2 years ago

13

Forest fires have inflicted significant damage to a region, leaving several paper mills destroyed in their wake. As such, the su

pply of paper in the region has been significantly reduced. Without government intervention, which of the following is likely to occur?
A shortage of paper will persist indefinitely unless government action is taken to increase paper production in the region.

A temporary shortage of paper will be remedied as consumers bid up prices, and paper production increases due to the rising profits associated with higher prices.

History

2 answers:

Romashka-Z-Leto [24] · Answer 1 · 2023-01-07T21:04:44+03:00

Forest fires destroys woods in the forest. Woods are used in the production of papers. When forest fires destroys woods in the forest, there will be shortage of paper.

Without government intervention, a<em> shortage of paper will persist indefinitely unless government action is taken to increase paper production in the region</em>.

<em>Forest</em> fires has decreased the availability of papers in the region. The supply of paper had greatly reduced leading to a high demand for paper.

As such, when supply keeps decreasing without a resultant increase in demand; prices go up(increase) until government introduces a program to help increase woods in the forest in order to increase paper production.