U.S. policy makers must consider the elasticity of export supply from the rest of the world in formulating sugar policy. Suppose that in the rest of the world there are 1,000,000 consumers of sugar, each with the demand curve QD = a - bP, and 1,000,000 producers, each with the supply curve QS = c + dP, where QD and QS are the quantities demanded and supplied, respectively, Questions and Problems P is the price, and a, b, c, and d are positive constants. Construct a diagram like Figure 7 .2, showing how the rest-of-world export supply curve is constructed from the rest-of-world supply and demand. Now, double the number of foreign consumers and producers, and, on the same diagram as you have just constructed, draw the new rest-of-world supply, demand, and export supply curves for sugar. Next, double the numbers again, and draw the new curves, still on the same diagram, and finally draw what the export supply curve will look like eventually as the number of foreign producers and consumers becomes very large. What happens to the elasticity of export supply as the number of foreigners becomes large? What happens to the optimal U.S. sugar tariff? BONUS: To what value will the equilibrium world price converge with the U.S. optimal tariff in place, as the number of foreigners becomes large? You of course cannot come up with numbers, but you can come up with an algebraic expression.