Sugarland is a large consumer of sugar. The market for sugar is perfectly competitive. The domestic demand (q_d) and supply (q_s) of sugar are given by

p= 12 -q_d;

and

p= 2*q_s;

respectively. The export supply curve faced by Sugarland is

X=p -3;

whereXis exports.

(a) Compute the free-trade world price and the amount of sugar imported by Sugarland.

(b) Suppose an import tariff of5/2per unit of sugar is imposed by the Sugarland government. What is the new import amount? What is the new world price? What is the price paid by consumers in Sugarland?

(c) What is the deadweight loss in Sugarland?