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Equilibrium Price Of Commodity Sample Assignment

QUESTION: Discuss the effects of US sugar quotas on the following:

The equilibrium price of sugar in the United States

The amount of sugar produced in the United States

The amount of people working in the sugar industry in the United States

Based on your answer, identify who benefits and who is hurt because of the tariffs and also identify at least one industry that is likely to strongly lobby in favor of quotas and one that is likely to lobby against the quotas.

 

 

Ans The equilibrium price of sugar in the United States will go up,

      The amount of sugar produced in the United States will come down

    People who are working in sugar industry will be forced to leave the industry as the production will be reduced and many factories will get closed due to this

The policy has been highly  criticized both at home and abroad for supporting only a  small group of sugar producers at the cost of consumers, taxpayers, sugar-using industries, and the environment. This  program depends  on restricting sugar imports to keep domestic prices high, which mostly hurts those developing countries which  are low-cost producers of sugar. This artificially high price  provides incentives for domestic sugar producers to raise production into environmentally sensitive areas. Quotas enforce a legal limit on the quantity that can be imported, creating shortages which can lead  prices to rise. A quota is beneficial to domestic producers in the same way a tariff does, but the additional money expanded  on foreign goods goes in the  pocket of foreign producers, not the domestic government. But even if one industry has to be chosen that is likely is in the favor of quotas would be textile industry and the one which is against the quotas would be poultry industry

Other Sample Assignments in Economics Homework Assignment :

Manufacturer Production Function	Price Elasticity Of Supply
Equalization Of Wages	Equilibrium Price Of Commodity
Poverty In India	Gross National Product
Consumption At Different Levels	Gross Domestic Product
Investment Decision	Expected Raturn
Level Of Income	Saving Equation
Equilibrium Level of Income	Equilibrium Level of National
Equilibrium GDP	Equilibrium level of GDP
Autonomous Investment	Calculate The Equilibrium GDP
Government Expenditure	Equilibrium Gdp Of Economy
Hypothetical Information	Equilibrium GDP Government
Equilibrium Level Of Inceome	Equation For Monetary Equilibrium
Calculate Saving Function	Equilibrim Level Of Income
Regardless Of The Level Of Income

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