In autarky, suppose that the equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia engages in free trade with the rest of the world. The world price of sugar is $125 per ton. Now suppose that the government of Birdonia gives an export subsidy of $50 per ton to its sugar producers. What will happen to the world price of sugar?

Group of answer choices

It will not change.

It will rise to $175 per ton.

It will rise to $150 per ton.

It will rise to between $125 and $175 per ton.