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6. Suppose that passage of CAFTA (Central American Free Trade Agreement) results in a significant increase in the supply of sugar in the U.S. this year, and at the same time there is a significant decrease in the demand for sugar, due to health concerns about sugar and high-calorie sugar products. What can we say about the new equilibrium price and equilibrium output for sugar, compared to the pre-CAFTA levels (higher, lower, same, or uncertain)? Please provide your own answers to the following:
a. New equilibrium output?
b. New equilibrium price?
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