Ethanol and sugar are both made from sugarcane, 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 __.

Factories that process sugarcane have to decide what quantities will they produce of sugar and ethanol. If they produce sugar, they can'y produce ethanol, and vice versa.

So when the price of ethanol increases, sugarcane factories will increase the quantity supplied of ethanol, therefore reducing the quantity supplied of sugar. Since the quantity supplied of sugar decrease by external factors not related to its demand, then the price of sugar will increase since the quantity demanded will be more than the quantity supplied.

ayfat23 ayfat23 · Answer 2 · 2022-04-01T11:43:33+02:00

If Increasing oil prices cause the demand for ethanol to increase, then this will cause the supply sugar to decrease and its price to increase.

What is demand?

Demand can be regarded as the quantity of a good that consumers are willing and able to purchase.

This willingness is base on various prices during a given period of time.

Therefore, if demand of a good is high, the price might goes up.

Learn more about demand at:

https://brainly.com/question/25220385

Ethanol and sugar are both made from sugarcane, 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 ______.

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What is demand?

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Ethanol and sugar are both made from sugarcane, 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 __.