In what ways is the marketfor sugar used in confectionary related to the market for ethanol?

Expert Solution

Both ethanol and sugar are made from sugar cane and ethanol can be used as a substitute for oil. As the price of oil increases, producer may shift sugar cane from sugar production to ethanol production, thereby increasing the price of sugar. Falling oil prices will cause Increase in the supply of sugar , decrease in the supply of ethanol.

Rahul Sunny answered 2 years ago

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In what ways is the marketfor sugar used in confectionary related to the market for ethanol?

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