3. A small country imports sugar. With free trade, the world price of sugar is $0.20 per pound. The country's national market for sugar with free trade is:

-Domestic production: 100 million pounds/year

-Domestic consumption: 300 million pounds/year

-Imports: 200 million pounds/year

The country's government now decides to impose a quota that limits sugar imports to 80 million pounds per year. With the import quota in effect, the domestic price rises to $0.28 per pound, and domestic production rises to 200 million pounds/year. The government auctions the import licenses for the 80 million pounds of imports.

1. Please calculate how much domestic producers gain or lose from the quota.
2. Please calculate how much domestic consumers gain or lose from the quota.
3. Please calculate how much the government receives for the auction for the import licenses.

1. Please calculate the net national gain or loss in surplus in the small country from the quota.