Recession

Scandia imports most of its wheat from Ukrainia. Last year, Ukrainia was hit by a drought, affecting all its agricultural produce. Its wheat output was down by 50%, because of whichit decided to cancel all wheat exports so that it could have sufficient wheat supply for domestic consumption. Which of thefollowing willNOT be an impactof this decisiononScandia's economy?

1. Prices of wheat in Scandia will decrease sharply
2. Wheat imports would become expensive as Scandia looks to other alternate wheat exporters.
3. Local bakery industry would take a hit.
4. Prices of wheat in Scandia will increase sharply.