Over the past decade, many American candy companies, including Hershey Company, Brach's Confections, and Ferrara Pan Candy, opened factories in Mexico and Canada to produce candy that is then shipped back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages. How do U.S. price supports (price floors) in the sugar industry encourage these moves? CHOOSE ONE:
A price support will shift the supply curve to the left and raise the price of the input used to produce candy in the United States.
A price support will shift the demand curve to the right causing more people to purchase candy.
A price support will shift the supply curve to the right and reduce the price of the input used tp produce candy in the United states.
A price support will shift the demand curve to the left causing more people to purchase less candy.
