From the chapter discussion, why did increased ethanolproduction and consumption in Brazil result in higher sugarprices?
A)Sugar is the primary ingredient in ethanol production and thus when the demand for ethanol increased the demand for
Sugar also increased.
B)Farmers reallocated sugar cane to ethanol production, decreasing the production of sugar, and leading to higher sugar
Prices.
C)Brazil's demand for sugar increased.
D)A disease attacked the sugar crop and caused a decrease in sugar production.

Question

Quizplus · Accepted Answer

When there is an increase in ethanol production, farmers begin to allocate more of their sugar cane to ethanol production. This causes a decrease in sugar production and thus results in higher sugar prices.

From the Chapter Discussion, Why Did Increased Ethanolproduction and Consumption