Shortage of Cooking Oil Looms as Biofuels Gain Global Appeal

Governments are embracing energy made from plants like soybeans or canola creating a shortage of vegetable oils used in cooking. A severe drought has devastated Argentina’s soybean oil production. In Europe, restrictions on bee-toxic pesticides will curb planting of rapeseed, and Russia’s ongoing invasion of Ukraine will slash sunflower oil exports.—bloomberg.com

Answer the following questions to check your understanding of the story.

What is the relationship between biofuels and cooking oil?

Biofuels and cooking oil are ____________.

a) substitutes in production

b) substitutes

c) complements

d) complements in production

Why is a shortage arising in the market for vegetable oil?

a) The demand for cooking oil is increasing with no change in the supply of cooking oil.

b) The supply of cooking oil is decreasing and the demand for cooking oil is increasing.

c) The supply of cooking oil is decreasing with no change in the demand for cooking oil.

d) The demand for cooking oil is decreasing less than the supply of cooking oil is decreasing.

Shortage of Cooking Oil Looms as Biofuels Gain Global Appeal

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