(Scenario: Sugar Trade in Birdonia) in Autarky, Suppose That Equilibrium

(Scenario: Sugar Trade in Birdonia) In autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia engages in free trade with the rest of the world. The world price of sugar is $125 per ton. What will happen to the domestic price of sugar in Birdonia?

A) It will rise to $125 per ton.
B) It will fall by $25 per ton.
C) It will remain $100 per ton.
D) It will first rise to $125 per ton, then fall to $100 per ton.