The United States has a long standing quota in place for imported sugar. The U.S. Government sells import licenses for sugar directly to the governments of sugar exporting countries. For purposes of this question, assume the U.S. is a small country with respect to sugar. The following is data on raw sugar for the year 2019:

7. The United States has a long standing quota in place for imported sugar. The U.S. Government sells import licenses for sugar directly to the governments of sugar exporting countries. For purposes of this question, assume the U.S. is a small country with respect to sugar. The following is data on raw sugar for the year 2019: U.S. Raw Sugar Price $0.2601 per pound World Raw Sugar Price $0.1235 per pound U.S. Raw Sugar Production 11.00 million metric tons U.S. Raw Sugar Consumption 8.95 million metric tons U.S. Price Elasticity of Demand for Sugar -0.11 U.S. Price Elasticity of Supply for Sugar 1.50 Using the data in the table, estimate the welfare effects of the U.S. sugar quota for 2019. b) Explain why welfare effect estimates like what was calculated in part a) are most likely underestimating the true welfare effects of trade instruments