During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. How is the gain from imports distributed between consumers and domestic producers?

Question

Quizplus · Accepted Answer

The gain from imports is typically distributed such that consumers benefit from lower prices and a wider variety of goods, while domestic producers may be harmed due to increased competition from imported goods. In this case, U.S. consumers benefit from the availability and potentially lower prices of imported coffee, while U.S. coffee producers could be harmed by the competition.

During the First 6 Months of 2008, the United States