Sugar Import and Domestic Purchases in the United States

How much sugar do Americans purchase from U.S. producers and import from abroad?

a) 2 million tons, 3 million tons

b) 3 million tons, 2 million tons

c) 1 million tons, 4 million tons

d) 4 million tons, 1 million tons

Final answer:

The correct answer is a) 2 million tons, 3 million tons.

Explanation:

The correct answer is a) 2 million tons and 3 million tons.

The price of sugar in the United States includes a $100 per ton tariff on sugar imports, which means that the price for domestically produced sugar is $200 per ton. Americans purchase 2 million tons of sugar from U.S. producers, and since the current price of sugar is $300 per ton, the total expenditure on domestically produced sugar would be 2 million tons * $300 per ton = $600 million.

On the other hand, Americans also import 3 million tons of sugar from abroad. Since the imported sugar is subject to the $100 per ton tariff, the total expenditure on imported sugar would be 3 million tons * ($300 per ton (price in the U.S.) + $100 per ton (tariff)) = $1.2 billion.