3) in what ways is the market for sugar used in confectionery related to the market...

3) in what ways is the market for sugar used in confectionery related to the market for ethanol?

Solutions

Expert Solution

Answer:-

So the demand for sugar for making confectionary and ethanol both decide the price of sugar. Since sugar is raw material for making ethanol, so more is the price of sugar more will be the price of ethanol. And since ethanol will be used as a fuel, its demand will be price elastic.

It has been provided that sugar production has declined in some parts of the world due to weather-related factors.

This decline in production has resulted in a decrease in the supply of sugar.

On the other hand, demand for sugar is increasing at an unprecedented rate. Much of this demand is coming from the ethanol industry that needs sugar to turn it into ethanol for fuel.

When a supply of a commodity decreases while demand for it increases than in that case price of commodity rises.

A similar thing has happened with sugar.

Decrease in the supply of sugar while increased demand for it has resulted in a recent increase in the price of sugar.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

In what ways is the market for sugar used in confectionery related to the market for...

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

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

8. What are 3 ways in that CVP analysis can be used by managers to make...

8. What are 3 ways in that CVP analysis can be used by managers to make decisions?

3) Explain the three ways money is used. What are the components of M1? M2? Explain...

3) Explain the three ways money is used. What are the components of M1? M2? Explain the two types of money and give examples. When did we leave the gold standard and why? 5) Define an equity security and a debt security. What makes them different? Give an example of each. How does trading occur in each of these markets? How can diversification reduce portfolio risk, explain what that would look like in holdings?

Discussing the market for health services. What are the main ways in which the market for...

Discussing the market for health services. What are the main ways in which the market for health services differs from a competitive market? What are two changes to the market for health services you would recommend to increase efficiency in the market for health services and make the market more competitive? How would you increase equity in the market for health services? Can you increase both equity and efficiency?

In what specific ways is the social environment related to health and illness in this country?...

In what specific ways is the social environment related to health and illness in this country? (In your own words)

Explain the ways that the production of sugar during the colonial period of the Americas changed...

Explain the ways that the production of sugar during the colonial period of the Americas changed the social landscape across the world.

Unit 3 Journal Prompt One of the ways that informal writing if often used is in...

Unit 3 Journal Prompt One of the ways that informal writing if often used is in communicating thoughts, concerns, ideas, and goals to others. In this Journal, imagine that a friend, family member, or personal acquaintance is thinking about returning to school to further his or her education or training. Write either an email or letter to this friend, encouraging him or her to return to school. Use your own personal experience to motivate and show the friend how he...

What is a loan amortization schedule, and what are some ways these schedules are used?

Question 3 (4 marks) The accountant at Sweet Delicacies Confectionery Corp. (SDC) is attempting to reconcile...

Question 3 The accountant at Sweet Delicacies Confectionery Corp. (SDC) is attempting to reconcile the March 31, 20X9, balance in the company’s bank account to its cash account in its general ledger. Pertinent details follow: The balance reported on the bank statement as at March 31, 20X9, was $12,170.  The balance recorded in SDC’s general ledger for cash as at March 31, 20X9, was $24,108.  The bank withdrew $65 from SDC’s account on March 31 for service charges...

Subjects