Sugarcane can be used for producing both sugar and ethanol.New regulations in certain countries now allow a higher level of ethanol in gasoline.An economist would expect sugarcane prices to ____, and quantity sold to ____.
A)rise; rise.
B)fall; fall.
C)rise; fall.
D)fall; remain the same.

Question

Quizplus · Accepted Answer

With higher demand for ethanol due to new regulations, the demand for sugarcane increases, leading to higher prices and a higher quantity sold.

Sugarcane Can Be Used for Producing Both Sugar and Ethanol