Trade Barriers

Williams, Andrew T. "Estimating the Cost to Consumers of the U.S. Sugar Quota: An Exercise for Introductory Economics Classes." The Journal of Economic Education. 28 (Spring 1997) 173-181.

This exercise helps students understand trade barriers—supply and demand, consumer and producer surplus, and deadweight losses. Students should have some background of the U.S. sugar policy and the structure of the domestic sweetener industry (background included in article). Free-trade/no-trade situations are explained to the students (also in article). Then the instructor introduces the subject of a sugar quota. The students receive a worksheet to help them estimate the cost of the sugar quota to consumers. While data is collected and calculations are completed, many points of discussion arise that are covered in the literature.