From the Chapter Discussion, Why Did Increased Ethanol Production and Consumption

Multiple Choice

From the chapter discussion, why did increased ethanol production and consumption in Brazil result in higher sugar prices?

A) Sugar is the primary ingredient in ethanol production and thus when the demand for ethanol increased the demand for sugar also increased.
B) Farmers reallocated sugar cane to ethanol production, decreasing the production of sugar, and leading to higher sugar prices.
C) Brazil's demand for sugar increased.
D) The sugar crop was attacked by disease, which caused a decrease in sugar production.