Suppose that the United States allowed its domestic fuel producers to use ethanol made from any source (corn or sugar). What is likely to happen to U.S. production of corn ethanol and U.S. imports of sugar ethanol?
a. U.S. production of corn ethanol would increase, and U.S. imports of sugar ethanol would decrease.
b. U.S. production of corn ethanol would decrease, and U.S. imports of sugar ethanol would decrease.
c. U.S. production of corn ethanol would decrease, and U.S. imports of sugar ethanol would increase.
d. U.S. production of corn ethanol would increase, and U.S. imports of sugar ethanol would increase.
Ans: c. U.S. production of corn ethanol would decrease, and U.S. imports of sugar ethanol would increase.
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