Suppose that the world price of sugar is 10 cents a pound, the United States does not trade internationally, and the equilibrium price of sugar in the United States is 20 cents a pound. The United States then begins to trade internationally.
a. How does the price of sugar in the United States change?
b. Do U.S. consumers buy more or less sugar?
c. Do U.S. sugar growers produce more or less sugar?
d. Does the United States export or import sugar and why?