If More Sugar Cane Is Demanded for Ethanol Production, Ceteris

question 94

True/False

If more sugar cane is demanded for ethanol production, ceteris paribus, the price of sugar is expected to increase.

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Definitions:

Marginal Social Benefit

The benefit gained by society from the production of one more unit of a good or service.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both private costs and any externalities.

Marginal Social Benefit

The extra advantage to the community that comes from the consumption or production of an additional unit of a product or service.

Pollution Emissions

The release of pollutants into the environment, usually from industrial processes, vehicles, or other sources, which can harm human health and the ecosystem.