Consider a hypothetical world consisting of only three countries: Hungary, Australia, and Italy. Each country produces grain. Hungary is a smalleconomy compared to Australia and Italy and thus cannot influence foreign prices.On the following graph, the supply and demand schedules of Hungary are shown as Sun and Dun. Foreign supply schedules of grain are perfectlyelastic: Australia is a more efficient supplier of grain than Italy because its supply price is $1.00 per bushel (SAus), whereas Italy's supply price is$2.00 per bushel (Sita).PRICE (Dollars)10.009.008.007.006.005.004.003.002.001.000HunS +TS₁ +TSS+0 3 6AScenarioFree tradeWith tariffWith customs unionmSHu12 15 18 21 24 27 30GRAIN (Thousands of bushels)Calculate the quantity of bushels Hungary imports when the three nations engage in free trade. Enter this value in the first row of the following table.Also indicate which country Hungary imports from.?Imports(Thousands of bushels) Imports from...

Consider a hypothetical world consisting of only three countries: Hungary, Australia, and Italy. Each country produces grain. Hungary is a small economy compared to Australia and Italy and thus cannot influence foreign prices. On the following graph, the supply and demand schedules of Hungary are shown as Sun and Diun Foreign supply schedules of grain are perfectly elastic: Australia is a more efficient supplier of grain than Italy because its supply price is $1.00 per bushel (SA), whereas Italy's supply price is $2.00 per bushel (S). PRICE (Dollars) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0 ST S +T S S 036 9 12 15 18 21 24 27 GRAIN (Thousands of bushels) Calculate the quantity of bushels Hungary imports when the three nations engage in free trade. Enter this value in the first row of the following table. Also indicate which country Hungary imports from. Scenario Free trade With tariff With customs union 30 Imports (Thousands of bushels) Imports from... 000

Consider a hypothetical world consisting of only three countries: Hungary, Australia, and Italy. Each country produces grain. Hungary is a small economy compared to Australia and Italy and thus cannot influence foreign prices. On the following graph, the supply and demand schedules of Hungary are shown as Sun and Diun Foreign supply schedules of grain are perfectly elastic: Australia is a more efficient supplier of grain than Italy because its supply price is $1.00 per bushel (SA), whereas Italy's supply price is $2.00 per bushel (S). PRICE (Dollars) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0 ST S +T S S 036 9 12 15 18 21 24 27 GRAIN (Thousands of bushels) Calculate the quantity of bushels Hungary imports when the three nations engage in free trade. Enter this value in the first row of the following table. Also indicate which country Hungary imports from. Scenario Free trade With tariff With customs union 30 Imports (Thousands of bushels) Imports from... 000

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter19: International Trade

Section: Chapter Questions

Problem 3QFR

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