--%>
Assignment Help - homework help

Illustrate the effect of tax on the graph

The U.S. market for rice is illustrated below.

 

1057_gh1234.png


The world price of rice is $12 per bushel and the U.S. can purchase all of the rice that it desire at that price. The government places tax on imported rice of $2 per bushel. Illustrate the effect of this tax on the graph above. What will turn out to the amount of rice the U.S. imports?
The tax will raise the world price of rice to $14. Therefore, the U.S. will import less rice

 

1693_34536.png

   Related Questions in Managerial Accounting

  • Q : Benchmark test The process of testing a

    The process of testing a new software program using actual data and comparing the results to the alternative soft wares. The alternative can be new software or the organization's existing system. The test should be examined the software's accuracy and efficiency.

    		•
  • Q : Banker’s acceptance A security that

    A security that starts as an instrument similar to as check, in which a customer asks the bank to pay the designated amount to a payee in the future. The bank accepts the order, becoming responsible for payment, because the customer has the money to back the check, an

    		•
  • Q : Working areas of the Finance department

    Write a short note on the main working areas of the Finance department?

    		•
  • Q : Why wealth creation is a longer-term

    Write a short note on why wealth creation is a longer-term concept?

    		•
  • Q : Explain Cost Assignment Cost Assignment

    Cost Assignment: A procedure which identifies costs with activities, outputs, or another cost objects. In a wide sense, costs can be assigned to activities, processes, products, organizational divisions, and services. There are three

    		•
  • Q : Things which Weaknesses comprises Write

    Write a brief note on the things which Weaknesses comprises?

    		•
  • Q : Duties of Partner The duties of each

    The duties of each partner: The partners are beneath a fiduciary duty towards one another to: Render true accounts; Account for private gains; and Refrain from competition with the partnership firm.

  • Q : How useful is the management accounting

    Briefly define how useful is the management accounting information is?

    		•
  • Q : Define Avoidable Cost Avoidable Cost :

    Avoidable Cost: The cost related with an activity which would not be acquired if the activity were not executed.

    		•
  • Q : Define Cost Avoidance Cost Avoidance :

    Cost Avoidance: The action taken to decrease future costs, like replacing parts before they fail and cause harm to other portions. Cost avoidance might incur higher (or extra) costs in the short run however the final or life-cycle cost would be lower.

    		•