econs
1. A) Economically when the United States decides on an import quota, the quantity of sugar available in the country will be relatively lesser before the implementing of such policy. It prevents US suppliers to import too much, which means that there is a limit on the quantity of sugar imports. Hence, the total supply of sugar in the United States equals to the quantity of domestic sugar supply and quantity of import sugar supply. In general, quota increases the supply curve of the sugar to the right side due to the increase in supply of sugar. It also raises the domestic sugar price above the world price.