Illustrate the effect of tax on the graph

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

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

View Complete Question

Related Questions in Managerial Accounting

Q : Explain Dissolution 1) Dissolution ENDS

1) Dissolution ENDS the partnership. a) Action of the parties: • By the expiration of a fixed term;• If entered

Q : Reconstitution of Partnership Meaning

Meaning of Reconstitution: Any alter in agreement of partnership is termed as reconstitution of partnership firm. In following circumstances a partnership firm might be reconstituted: A) Alter in Profit Sharing Rat

Q : Explain Managerial Cost Accounting

Managerial Cost Accounting System: The organization and processes, whether automated or not, and whether portion of the general ledger or stand-alone, which accumulates and reports constant and trustworthy cost information and perform

Q : What is Outcome Outcome : The outcomes

Outcome: The outcomes of a program activity as compared to its intended aims. Program outcomes might be computed in terms of service or product quality and quantity, customer satisfaction, and usefulness.

Q : Explain Standard Costing Standard

Standard Costing: A costing technique which joins costs to cost objects based on reasonable approximations or cost studies and by the means of budgeted rates instead of according to actual costs incurred. The predictable cost of gener

Q : Blackout period A defined time period

A defined time period in accounting for stock options. In the mean while the blackout period person granted the option is not allowed to exercise it. This usually occurs after the granting of the stock options and allows the price of the stock to increase above the exercise price. <

Q : Number of Partners in Partnership What

What is the maximum and minimum number of partners in each and every type of partnership? Answer: There must be at least two persons to build a Partnership. The maxi

Q : Define Partnership Accounting

Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

Q : Fundamentals of Accounting Assignment

Assignment 1: A adjusted Trial balance table given below: Southwest Business School

Q : Define Job Costing Job Costing : It is

Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.

Discover Q & A

Leading Solution Library

Avail More Than 1426324 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931354
Asked

3,689

Active Tutors

1426324

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment