In 2012 the U.S. government reduced the quantity of sugar that can be imported from other nations. This action ________ the price of sugar in the United States and ________ the quantity consumed in the United States.

Question

Quizplus · Accepted Answer

When the quantity of sugar that can be imported from other nations is reduced, the domestic supply of sugar decreases, resulting in an increase in the price of sugar in the United States due to the reduced availability. This increase in price will decrease the quantity consumed in the United States, as consumers will either switch to alternatives or reduce their overall consumption of sugar.