Import restrictions usually benefit domestic producers at the expense of domestic consumers

A 10 percent increase in the price of sugar reduces sugar consumption by about 5 percent. The increase causes households to

a. spend more on sugar. b. spend less on sugar. c. spend the same on sugar. d. consume more goods like coffee and tea that are complements of sugar.

Describe the graph for a long-run supply curve in an increasing-cost industry. Why does it have this slope?

What will be an ideal response?