Question

Sugarcane is vulnerable to the cane beetle, which can substantially reduce crop yields. Suppose that a new beetle‑resistant species of sugarcane is developed and productivity increases as a result. Use the terms to identify the effect on each of the related factors.As productivity increases, the price of sugar will ______The quantity demanded for sugar will then ______Given the change in the price of sugar, the price of cookies will ______The price of honey, also used as a sweetener, will ______Responding to changes in the sugar market, the price of textiles will ______Answer Bank A. not change. B. decrease. C. increase

Answer 1

Answer:(1) Decrease (2) Increase (3) Decrease (4) Decrease (5) Not chanhe

Explanation: This tries to describe a free market economy,where price, quantity demanded and quantity supplied are influenced by the market forces. The improved productivity of the Sugarcane which is a major raw material for sugar production is increased,the cost of production of Sugarcane will decrease as productivity increases,the quantity supplied to the market will increase leading to decreased price for all sugar value chain. The price for Honey a sweetener will also decrease responding the increased demand for sugar but the price for textile will not change because it is not a substitute for sugar.