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Recall the Example of Increasing-Cost Industries Such as Sugar,at a Price

Question 23

Multiple Choice

Recall the example of increasing-cost industries such as sugar,at a price of 11 cents,the world supply of sugar equals the amount produced in the areas with low production costs.If the price of sugar increases what will happen in the sugar market?


A) Sugar production becomes profitable in areas with higher production costs.
B) The quantity demanded increases.
C) The quantity supplied increases.
D) Both A and C

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