Question

in one to two sentences explain what happens to a production possibilities curve if a natural disaster creates a scarcity of a key resource needed to make a product explain why this happens

Answer 1

If a natural disaster creates a scarcity of a key resource needed to produce a product, the production possibilities curve (PPC) shifts inward, indicating a decrease in potential output. This occurs because the reduced availability of the resource limits the economy's ability to produce goods and services at previous levels.