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Imagine that the United States Congress is considering a law that sets a binding quota on the permissible amount of foreign-produced sugar that can be imported into the United States. The quota is expected to increase U.S. sugar prices, which will have two effects: increase the profits for U.S. sugar producers, and decrease the consumer surplus for U.S. residents. Specifically, the quota is expected to increase sugar profits by $10 million each for the ten largest U.S. sugar producers, for a total of $100 million. Additionally, the increased sugar prices will result in an average decrease in consumer surplus of $1 per U.S. resident. Since there are approximately 300 million people living in the U.S., total consumer surplus will decrease by approximately $300 million. Select all of the following statements that accurately describe whether the legislation passes or not.
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