2. Domestic sugar producers in the United States have convinced the Federal government to impose price supports and import quotas that keep the domestic price of sugar at more than double the world price of sugar. This costs domestic sugar consumers about $2 billion each year in higher sugar costs. Taxpayers also provide $150 million of subsidies each year directly to sugar growers. LO2

a. There are about 300 million people living in the United States. How much on average does the $2 billion in higher sugar prices cost Americans each year? What about the $150 million paid directly to sugar growers?
What is the combined average cost per person for these two items?

b. About half the $150 million per year in subsidies goes to growers of sugar cane, the other half to growers of sugar beets. But there are about 13,000 beet growers compared to only 1500 cane growers. How much on average does a beet grower receive? How much on average does a cane grower receive?

c. For both cane and beets, a relatively few big producers garner most of the subsidies. About 2000 beet farms receive about half the subsidies flowing to beet farmers.
But cane is even more concentrated, with only 20 cane farms receiving about half of all cane sugar subsidies.
About how much on average do the 2000 beet farms receive in subsidies? What about the 20 cane farms?

d. Look back at your answers to parts a and c . Compare the combined average cost per person of the sugar subsidies with the average amount of subsidy received by the 20 largest cane sugar producers. How many people would you have to mobilize to oppose sugar subsidies so that their combined personal losses exceed the money going to just one of the 20 largest cane farms?