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o. For a company that produces candy canes, sugar is 1'0 percent of its ingredient costs. The United States limits the imports of sugar tn
o. For a company that produces candy canes, sugar is 1'0 percent of its ingredient costs. The United States limits the imports of sugar tn protect cane farmers, which has led to an increase in the price of sugar by about 25 percent relative to what it would be otherwise. Suppose your country. however. allows free trade in candy canes, which are made with sugar that accounts for approximately {35 percent of its cost. What is the effective rate of protection on the process of turning sugar into candy canes
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