Question

1. how are oil and candy bar markets linked? a. ethanol and sugar are both made from sugarcane. ethanol can be used as a fuel substitute for oil. as the price of oil increases, brazil shifts its sugarcane from sugar production to ethanol production. this causes the demand for sugar to decrease and price of candy bars to decrease. b. ethanol and sugar are both made from sugarcane. ethanol can be used as a fuel substitute for oil. as the price of oil increases, brazil shifts its sugarcane from sugar production to ethanol production. this causes the supply of sugar to decrease and price of candy bars to increase. c. ethanol and sugar are both made from sugarcane. ethanol can be used as a fuel substitute for oil. as the price of oil increases, brazil shifts its sugarcane from sugar production to ethanol production. this causes the demand for sugar to decrease and price of candy bars to increase. macmillan learning © 2024

Explanation:

Ethanol and sugar are both made from sugarcane, with ethanol as an oil substitute. When oil prices rise, Brazil shifts sugarcane from sugar to ethanol production, reducing sugar supply. Less sugar (a key candy bar input) leads to higher candy bar prices.

Answer:

B. Ethanol and sugar are both made from sugarcane. Ethanol can be used as a fuel substitute for oil. As the price of oil increases, Brazil shifts its sugarcane from sugar production to ethanol production. This causes the supply of sugar to decrease and price of candy bars to increase.