The Senate has voted to end the $6 billion a year in subsidies paid to the ethanol industry for the past three decades. Refiners would lose the 45-cent-a-gallon subsidy, and the tax on imported ethanol would be eliminated.

Describe the efficiency of the market for ethanol with the $6 billion subsidies in place. If the subsidies and taxes are eliminated, explain how the efficiency of the market for ethanol would change.