The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Since individual consumers do not know how much of the price they pay for a commodity is due to trade protection, consumers rarely lobby their political representatives to eliminate protection and reduce prices.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Since individual consumers do not know how much of the price they pay for a commodity is due to trade protection, consumers rarely lobby their political representatives to eliminate protection and reduce prices.

Quizplus · Accepted Answer

Consumers often lack detailed information about the extent to which trade protection policies (such as tariffs and quotas) contribute to the prices they pay for commodities. This lack of specific knowledge makes it less likely for individual consumers to actively lobby their political representatives to eliminate or reduce these trade protections, even though such actions could potentially lower prices.

The Figure Below Shows the Demand (D) and Supply (S)