Ethanol and sugar are both made from sugar cane, and ethanol can be used as a fuel substitute for oil. Increasing oil prices cause the demand for ethanol to increase. This will cause the ______ sugar to ______ and its price to ______.
A) demand for; decrease; decrease
B) supply of; increase; increase
C) supply of; decrease; increase
D) demand for; increase; increase

Question

Quizplus · Accepted Answer

As the demand for ethanol increases due to rising oil prices, more sugar cane will be used to produce ethanol rather than sugar, decreasing the supply of sugar and causing its price to increase.

Ethanol and Sugar Are Both Made from Sugar Cane, and Ethanol