Question

trade. it placed a high tax on all non - british molasses imported into the thirteen colonies. as a result, french molasses became more expensive than british molasses. new england rum distillers could only buy british molasses or more expensive french molasses.
molasses, a sweet, sticky syrup
sort the groups listed below based on whether they were likely to benefit from or be hurt by the molasses act.
new england rum distillers french molasses sellers british molasses sellers
likely to benefit from the act likely to be hurt by the act

Explanation:

• British molasses sellers: The Molasses Act imposed a high tax on non - British molasses. This made British molasses relatively more attractive in terms of price compared to non - British (like French) molasses. So British molasses sellers would have more customers (New England rum distillers would be more likely to buy from them as French molasses became more expensive), so they benefit.
• New England rum distillers: They now have to choose between British molasses (at original price) and more expensive French molasses. Their cost of production (for rum, since molasses is an input) would increase if they buy French, and even if they buy British, they have less choice and potentially less favorable pricing dynamics. So they are hurt.
• French molasses sellers: The high tax on non - British molasses makes their product more expensive in the Thirteen Colonies market. This would lead to a decrease in demand for their molasses as New England rum distillers would be less likely to buy it (due to higher cost). So they are hurt.

Answer:

• Likely to benefit from the act: British molasses sellers
• Likely to be hurt by the act: New England rum distillers, French molasses sellers