How droughts affect production

The technology and supplies that are used in the production of goods and services are affected. In the case of a drought, for example water for crop growth and irrigation is lacking, which reduces the amount of crop being produced. To understand the aftermath of a great natural disaster in its entirety, however, the fundamental principles of economics must be evaluated. First, when a disaster occurs, it affects production, or the amount of outputs per measure of input. This makes sensebecause the means through which widgets are produced—natural, human, and capital resources—are all being affected. For example, when a hurricane damages a city businesses within that city will not be able to continue functioning because they have lost the tools, machinery, and manpower through which they do so. So, during and immediately after a disaster takes place, production will be halted.