Many people feel that the sugar program is still around only because of political pressure.Given the following hypothetical data:

Growers in the U.S. receive $2 billion per year in income supports

It costs $40 million to have a high probability of successfully lobbying Congress to continue getting supports

There is the equivalent of 12,000 full time sugar producers

People in the U.S. consume 80 pounds of sugar per year

There are 250,000,000 people in the U.S.

The price of raw sugar for producers is about $.22 /lb in the U.S.

The world price is about $.11/lb

Given these numbers, use the Stigler model (algebra) to show how sugar supports continue.Next, pretend you are with a lobby group that wants to defeat supports.Show in the equation how you could reduce the chance that supports are continued.

Next try to show all of this graphically.