Question

If the price of sugar rises whilst the quantity of sugar traded falls, then it is likely that:

a.
The supply of sugar has increased

b.
The demand for sugar has fallen

c.
The demand for sugar has increased

d.
The supply of sugar has fallen

Answer 1

The demand of sugar has increased.

This is because when the trade of sugar falls then sugar is going to be considered as scarce, consumers are going to want to pay more for sugar because they are going to have unlimited want for sugar.