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24 January, 23:09

A town's large sugar beet processing factory is destroyed in a flood. Which of the following is a likely consequence in the next few months?

A. The demand for Sugar beets will decrease

B. The cost of processing sugar beets will increase worldwide

C. The farmers near the town will immediately plant more sugar beets.

D. The price of sugar beets will increase.

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Answers (1)
  1. 25 January, 00:51
    0
    In this situation the price of the sugar beets will increase as there is no adequate production due to the flood.

    Thus the correct answer is Option D

    Explanation:

    The inadequate production will result in the decrease in supply. The lack of supply means high demand and there is a negative relation between supply and demand. These two aspects hit each other negatively.

    High price means less demand and low price means more demand. Consumers demand for those products or goods which has low price and vice a versa.
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