Suppose a Small Island Nation Imports Sugar for Its Population

Multiple Choice

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. With no subsidy, the equilibrium price of sugar is ______ per ton, and the equilibrium quantity is ______ tons per day.

A) $1,000; 12
B) $1,000; 8
C) $1,500; 12
D) $1,500; 8