Ethanol and Sugar Are Both Made from Sugar Cane, and Ethanol

question 107

Multiple Choice

Ethanol and sugar are both made from sugar cane, and ethanol can be used as substitute fuel for oil. Increasing oil prices cause the demand for ethanol to increase. This will cause the ______ sugar to ______ and its price to ______.

• A) demand for; decrease; decrease
• B) supply of; increase; increase
• C) supply of; decrease; increase
• D) demand for; increase; increase

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Definitions:

Beginning Inventory

The valuation of goods on hand for sale or use in production at the start of an accounting period.