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Explain how the events described may have resulted

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In 2009, the hershey company of pennsylvania became the latest company to open a candy factory in mexico, joining other american candy companies including brach's confections and ferrara pan candy, which had opened plans there earlier. The reason for hershey's move was more than just lower wages. It was also because of lower sugar prices. Sugar prices in the united states have for many decades been supported in order to protect the american sugar industry and the thousands of farmers it employees. Using the tools of consumer and producer surplus, explain how the events described may have resulted from price supports for sugar.

Reference no: EM132126206

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