Economics for Hawaii Teachers Practice Test 2025 – The Complete All-in-One Guide for Exam Success!

Question: 1 / 400

What happened to the market for sugar in Hawaii when it began to grow sugarcane commercially in 1835?

Demand shifted left

Supply shifted right

When Hawaii began to grow sugarcane commercially in 1835, the supply of sugar in the market increased significantly. This is because the initiation of large-scale sugar production meant that more sugar was available for consumers, thus shifting the supply curve to the right.

As producers could harvest and process more sugarcane, they were able to meet consumer demand more effectively. An increase in supply typically leads to a decrease in price, assuming demand remains constant. Therefore, an increase in supply would contribute to making sugar more accessible and potentially more affordable for consumers, which reflects broader market dynamics in response to increased production capacity.

Understanding this shift in supply is crucial for recognizing how agricultural developments can influence local economies, particularly in a unique market such as Hawaii's sugar production during that historical period.

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Price increased

Demand remained stable

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