A Town's large sugar beet per processing factory is destroyed in a flood which of the following is a likely consequence in the next few months the problem the cost of processing sugar beets will increase worldwide the Farmers near the town will immediately plant more sugar beets the demand for sugar beets will decrease the price of sugar beets will increase

1 answer

The likely consequence in the next few months after the destruction of the sugar beet processing factory due to a flood would be that the price of sugar beets will increase.

Here's the reasoning:

  1. Destruction of Processing Capacity: With the factory destroyed, there would be a decrease in the capacity to process sugar beets locally, leading to a reduced supply in that area.

  2. Supply and Demand: The dynamics of supply and demand indicate that if the supply decreases (due to the factory's destruction) while demand remains the same or increases, prices are likely to rise.

  3. ** Farmers Planting More Sugar Beets**: While farmers might plant more sugar beets in response to high prices in the future, this would not be an immediate effect within the next few months as planting and growing cycles take time.

  4. World Processing Costs and Demand: It's also possible that processing costs could increase globally depending on how interconnected the sugar market is, but this is less direct.

Therefore, among the options given, the most probable short-term effect is an increase in the price of sugar beets.