Sugar Daddy: Quotas and the U.S. Government Harvard Case Solution & Analysis

Since 1981, the U.S. federal government has a program to support prices to help sugar beet and sugar cane producers and processors. It is a comprehensive program works through a combination of loans, import quotas and duties. As a result, the price of sugar in the U.S. is much higher than the world price. For example, in December 2001, U.S. consumers paid 22.9 cents per pound, while the world price was only 9 cents per pound. General Accounting Office suggests that the total cost to consumers of $ 1.9 billion a year. Uses simple supply-demand framework with real data to evaluate the economic and political consequences of the U.S. sugar program. "Hide
by Nabil Al-Najjar, Sandeep Baliga, Chris Foreman Source: Kellogg School of the 8 pages. Publication Date: January 1, 2004. Prod. #: KEL001-PDF-ENG

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