In a move to free the economy from unnecessary regulation, Congress decides to remove sugar price supports.What would most likely happen to the number of producers of sugar?
A)It would decrease, because sugar prices would fall.
B)It would decrease, because sugar prices would rise.
C)It would increase, because sugar prices would fall.
D)It would increase, because sugar prices would rise.

Question

Quizplus · Accepted Answer

If Congress removes sugar price supports, the market will be more competitive, leading to a decrease in sugar prices. This would mean that producers would not earn as much as they used to, leading to a decrease in the number of producers.

In a Move to Free the Economy from Unnecessary Regulation