If U.S.quotas on imported sugar were eliminated,
A)The supply of sugar in the United States would shift to the left and prices would rise.
B)The demand for sugar in the United States would shift to the left and prices would fall.
C)The supply of sugar in the United States would shift to the right and sugar prices would fall.
D)The world price of sugar would rise.

Question

Quizplus · Accepted Answer

Eliminating quotas on imported sugar would allow more sugar to enter the U.S. market, which would increase the supply of sugar in the United States. This increase in supply would shift the supply curve to the right, causing prices to fall. Additionally, the increase in demand for sugar from the United States could potentially lead to further shifts in the global market for sugar, potentially leading to a decrease in the world price of sugar.

If U.S.quotas on Imported Sugar Were Eliminated