The United States uses an import quota to maintain the domestic price of sugar well above the

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The United States uses an import quota to maintain the domestic price of sugar well above the world price. Analyze the impact of the quota. Use supply and demand analysis to illustrate your answer. To whom do the gains and losses of this policy accrue? How doesthe quota affect the efciency of resource allocation in the United States? Why do you think Congress is supportive of this policy?

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Microeconomics Private And Public Choice

ISBN: 9781305506893

16th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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