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This is a physical change because you can still change the paper to how it was before. If it was a chemical change, it would be impossible to change the paper to how it was before being cut.
Physical change, any change in matter which causes a substance to go to one form to another such as ice melting. Chemical change, any change when a substance is combined with another to make a new substance such as Wood burning. So, the answer to your question is Physical change.
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