At present,the United States uses a system of quotas to limit the amount of sugar imported into the country.Which of the following statements is most likely true?
A)The quotas are probably the result of lobbying from U.S.consumers of sugar.The quotas increase consumer surplus for the United States,reduce producer surplus for the United States,and harm foreign sugar producers.
B)The quotas are probably the result of lobbying from U.S.producers of sugar.The quotas increase producer surplus for the United States,reduce consumer surplus for the United States,and harm foreign sugar producers.
C)The quotas are probably the result of lobbying from foreign producers of sugar.The quotas reduce producer surplus for the United States,increase consumer surplus for the United States,and benefit foreign sugar producers.
D)U.S.lawmakers did not need to be lobbied to impose the quotas because total surplus for the United States is higher with the quotas than without them.

Question

Quizplus · Accepted Answer

The quotas are likely the result of lobbying from U.S. producers of sugar, who benefit from the protection from foreign competition. The quotas increase producer surplus for the United States, but decrease consumer surplus as consumers have to pay more for sugar. Foreign sugar producers are also harmed as they are unable to sell as much sugar in the U.S. market.

At Present,the United States Uses a System of Quotas to Limit