Extract C (lines 12–13) states: 'with governments mandating higher ethanol blends in petrol, the diversion of sugarcane crops from sugar production to biofuel refineries has intensified the 'sweetness versus speed' debate.'
Explain how the increased demand for sugarcane used for bioethanol is likely to affect the market for sugar used in food products.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.