In 2016 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

Reducing the quantity of sugar that can be imported decreases the supply of sugar in the U.S. market. According to the law of supply and demand, a decrease in supply, with demand remaining constant, leads to an increase in price and a decrease in the quantity consumed.