Sugar cane can be used to produce sugar as well as the fuel ethanol for automobiles. Falling oil prices will cause a(n) ________ in the supply of sugar, resulting in ______ candy prices.
A) decrease; lower
B) decrease; higher
C) increase; lower
D) increase; higher

Question

Quizplus · Accepted Answer

Falling oil prices make ethanol production less profitable, leading producers to allocate more sugar cane to sugar production, increasing the supply of sugar and resulting in lower candy prices.

Sugar Cane Can Be Used to Produce Sugar as Well