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 Imports (Thousands of bushels) Imports from...
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 Imports (Thousands of bushels) Imports from...
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:This diagram illustrates a supply and demand graph related to grain, showing different price and quantity scenarios.
**Axes:**
- The vertical axis represents the PRICE in dollars.
- The horizontal axis represents the GRAIN quantity in thousands of bushels.
**Supply and Demand Lines:**
1. **S_AUS (Orange Diagonal):** Represents the supply of grain from Australia, originating from the bottom left.
2. **S_HUN (Orange Vertical):** Represents the supply of grain from Hungary.
3. **D_HUN (Blue Diagonal):** Represents the demand for grain in Hungary, sloping downwards from the top left.
**Horizontal Lines:**
- **Straight Horizontal Lines:** Represent different price levels for grain.
- **S_AUS + T (Green)** and **S_HUN + T (Red):** Indicate supply levels including a tariff (T).
**Regions and Price Points:**
- Point intersections denote equilibrium positions and shifts due to tariffs or other market changes.
- Areas labeled A, B, and C suggest different market regions or outcomes considering equilibrium shifts.
**Color Coding:**
- **Green:** Supply with tariff from Australia.
- **Red:** Supply with tariff from Hungary.
- **Blue and Orange:** Demand and supply intersect to show shifts in market equilibrium.
Overall, this graph can be utilized to explain how tariffs affect international grain supply and demand, influencing price and quantity levels across different markets.
Transcribed Image Text:### Educational Website Content: International Trade and Economics
**Homework (Chapter 08)**
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#### Graph Analysis: Grain Imports
The graph above illustrates the grain supply and demand for Hungary, Australia, and another unspecified country. The x-axis represents grain measured in thousands of bushels, while the y-axis shows the price per bushel. The lines on the graph denote different scenarios for grain supply:
- **S_Aust** (Supply from Australia) increases up to 24,000 bushels.
- **S_ita** (Supply from Italy) extends beyond the Australian supply.
- Segments labeled B, A, and C represent different market conditions and trade lines between nations.
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#### Task
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 from which country Hungary imports.
| Scenario | Imports (Thousands of bushels) | Imports from... |
|-------------------|--------------------------------|-------------------|
| Free trade | | |
| With tariff | | |
| With customs union| | |
---
Please complete the table based on the graph data and submit your responses to the educational portal for assessment.
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