During 2005, sugar production in the US: 11.4 billion pounds; consumption 17.8 billion pounds; prices in the US 22 cents/pound; world prices 8.5 cents/pound… At those prices and quantities there is an elasticity of demand and supply of Ed = -0.2; Es = 1.54. Request:

Determine the supply and demand curves for sugar in the US market. Determine the equilibrium price of sugar in the US market.
To ensure the interests of the sugar industry, the government introduced an import quota of 6.4 billion pounds. Determine the change in consumer, producer, and government surplus, and the change in social welfare.
Suppose the government levies an import tax of 13.5 cents/pound. How does this affect the interests of all members? Compared with the case of quotas, what measures should the government take?