From the chapter discussion, why did increased ethanol production and consumption in Brazil result in higher sugar prices?
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) The sugar crop was attacked by disease, which caused a decrease in sugar production.

Question

Quizplus · Accepted Answer

Increased ethanol production in Brazil led to farmers reallocating their sugar cane to produce ethanol, which decreased the production of sugar and led to higher sugar prices.

From the Chapter Discussion, Why Did Increased Ethanol Production and Consumption