Answered

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Suppose the United States removes sugar quotas and the market price of sugar drops. If the demand curve for candy bars is downward-sloping, in the candy bar market we would expect the:________


a. Consumer surplus to decrease.


b. Deadweight loss to increase.


c. Consumer surplus to increase.


d. Consumer surplus to be unchanged

Sagot :

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Answer:

C. Consumer surplus to increase

Explanation:

Sugar is a cost of production. With the cost being lower, costs of production for candy bars are lower. Supply shifts right, extra CS.

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