Rebecca owns Louisiana Sugar Company, a manufacturer of sugar. Since there are  lots of domestic manufacturers and importers  of sugar and it is difficult to practice brand differentiation, the sugar industry is highly competitive. Suppose the demand for sugar increases. (1)  What will be the effect on the market price and quantity of sugar in the short run and in the long run?  Explain why. (2)  What will happen to the economic profits of Louisiana Sugar Company in the short run and in the long run?  Explain why.

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