If Quotas on Sugar Were Eliminated in the United States

Multiple Choice

If quotas on sugar were eliminated in the United States, domestic production of sugar would fall. Why is this a benefit in economic terms for the United States? I. because it frees up resources that could be used more efficiently elsewhere II. because it allows foreign producers of sugar to earn income and thus those countries are better off III. U.S. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar.

A) I and II only
B) I and III only
C) II and III only
D) I, II, and III