Suppose That Sugar Produced in Cuba Sells for a Lower

question 62

Multiple Choice

Suppose that sugar produced in Cuba sells for a lower price in Mexico than it does in the United States.What is the most likely reason for the difference in prices in the two locations?

• A) The United States has more stringent trade restrictions on Cuba than Mexico.
• B) Shipping the sugar to the United States is more expensive than shipping it to Mexico.
• C) The sugar sold in Mexico is different from the sugar sold in the United States.
• D) Americans prefer high fructose corn syrup, whereas Mexicans prefer sugar.
• E) Mexico has a closer political relationship with Cuba, and so Mexico receives a discount on the sugar compared to the price charged the United States.

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