Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. 2500 2000 1500 S = World price Price ($/ton) Domestic price 1000 with subsidy 500 0 4 8 12 16 20 Quantity (tons/day) With no subsidy, the equilibrium price of sugar is per ton, and the equilibrium quantity is tons per day. Select one: O a. $1,500; 8 O b. $1,000; 12 O c. $1,000; 8 O d. $1,500; 12