The decline in the price of sugar both increases the quantity demanded and decreases the quantity supplied of sugar. The price continues to fall until a new market equilibrium is reached where the quantity demanded equals the quantity supplied. Revenues are price of sugar times quantity of sugar sold. When the price supports are removed, both the price of sugar falls and the quantity of sugar sold falls. Therefore, the revenues of sugar producers will fall.
Consumer expenditures are price of sugar times quantity of sugar purchased.
When the price supports are removed, the price of sugar falls and the quantity of sugar purchased increases. Whether consumer expenditures increase or decrease depends upon the elasticity of demand. Illustrate a decrease in the demand for corn syrup. Corn syrup and sugar are substitutes. When the price of sugar falls, the demand for corn syrup will fall.