The US government protects domestic sugar producers from foreign competition with a combination of tariffs and quotas on imported sugar, along with subsidies to domestic sugar producers. As a consequence of these policies, What is the impact on the domestic sugar industry?
1) Increased production and profitability for domestic sugar producers
2) Decreased production and profitability for domestic sugar producers
3) Stagnant production and profitability for domestic sugar producers
4) No impact on production and profitability for domestic sugar producers
