2. In Tessland, suppose the domestic demand curve for sugar is given by: P = 40-0.008Q and the domestic supply curve is given by: P = 10 + 0.002Q. (a) In the absence of any trade, what is the equilibrium price and quantity of sugar? How much are the consumer surplus and domestic producer surplus? (b) Suppose the equilibrium price of sugar in the world market is P = 12. How much are the new consumer surplus and new domestic producer surplus? (c) What is a tariff and what is a quota in international trade? Suppose Tessland's government imposes tariff $2 per unit (a ton) of sugar. i. What will be the new effective price in the domestic market? ii. As a result, how much is the change in consumer surplus compared to (b)? iii. How is the loss in consumer surplus redistributed between domestic producer surplus, foreign producer surplus and government's revenue resulting from the tariff? How much is the dead-weight loss to the society