Suppose That Canada Removes Its Sugar Quotas and the Market

question 186

Multiple Choice

Suppose that Canada removes its 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:

• A) increase.
• B) decrease.
• C) not change.
• D) Consumer surplus cannot be determined without information about the size of the quota.

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