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    Microeconomics Study Set 40
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    Exam 5: Price Controls and Quotas: Meddling With Markets
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    Suppose the United States Removes the Current Sugar Quotas and the Market
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Suppose the United States Removes the Current Sugar Quotas and the Market

Question 124

Question 124

Essay

Suppose the United States removes the current sugar quotas and the market price of sugar drops.In the candy bar market, we would expect consumer surplus to:
A.increase.
B.decrease.
C.not change.
D.Consumer surplus cannot be determined without information about the supply curve.

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