Suppose the United States removes the sugar quotas and the market price of sugar drops. Since sugar is an input in candy, in the candy bar market, we would expect consumer surplus to:

Question

Quizplus · Accepted Answer

When the price of an input (sugar) decreases, the cost of producing candy bars decreases, leading to a lower market price for candy bars. This results in an increase in consumer surplus as consumers pay less for the same quantity or can buy more for the same expenditure.

Suppose the United States Removes the Sugar Quotas and the Market