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17-01-2020
Business

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Due to a recent hurricane there is a major loss of sugarcane crops. At the same time in the U.S. consumers are eating healthier and cutting back on eating items that have sugar in them. How will this affect the price and quantity in the sugar market?

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BenitoMarin BenitoMarin

17-01-2020

Answer and explanation:

We should consider that at the same time as the hurricane, U.S. consumers were cutting back on sugar foods. It implies that the quantity demanded for sugar foods was likely to decrease bringing the prices up. However, the hurricane affecting the sugarcane crops affects the supply which will be lower. Thus, definitely, if the quantity supplied is lower so will the price.

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