countervailing effect, depending on the demand for Sacchars sugar.
In the second place, increasing sales by lowering the price of sugar will not yield
an increase in income unless the increase in sales is sufficient to overcome the loss in
income due to the lower price. This raises three questions the author fails to address.
First, will a price decrease in fact stimulate demand? Second, is demand sufficient to
meet the increase in supply? Third, can Sacchar increase the sugar production
sufficiently to overcome the deficit? In the absence of answers to these questions, we
cannot assess the authors proposal.
In conclusion, the author provides an incomplete analysis of the problem and, as a
result, provides a questionable solution. To better evaluate the proposal, we would need
to know how revenues from imports are likely to change in the future. To strengthen the
argument, the author must provide evidence that demand is sufficient to meet the
proposed increase in supply, and that Sacchar has sufficient resources to accommodate
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