Question:
Suppose you want to start a business in an area in which a natural disaster has recently occurred. How would you decide which kind of business to start? Choose a business in an industry that has been affected, either in a negative or positive way, by the natural disaster. Will demand, supply, or both shift as a result of the event? What happens to equilibrium prices and output in this market? Would you expect these effects to be short-term, or will they impact the long-term performance of the business?