Price

8

cents

12

cents

14

cents

16

cents

20

cents

24

cents

28

cents

20

30

35

40

45

50

55

Brazil: Quantity

Supplied (tons)

Brazil: Quantity

U.S.: Quantity

U.S.: Quantity

Demanded (tons)

Supplied (tons)

Demanded (tons)

35

30

28

25

21

18

15

60

66

69

72

76

80

82

100

93

90

87

83

80

78

TABLE 20.1 The Sugar Trade between Brazil and the United States

Access for free at openstax.org
20.1 • Protectionism: An Indirect Subsidy from Consumers to Producers 475

If international trade between Brazil and the United States now becomes possible, profit-seeking firms will

spot an opportunity: buy sugar cheaply in Brazil, and sell it at a higher price in the United States. As sugar is

shipped from Brazil to the United States, the quantity of sugar produced in Brazil will be greater than Brazilian

consumption (with the extra production exported), and the amount produced in the United States will be less
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