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 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 : Relationship between risk and return

Write a short note on the relationship between risk and return?

Q : Determine & Analysis on Income

The DU Inn The DU Inn is an 80-room hotel located on some mountaintop in Colorado. That has no bar or restaurant &is positioned as a mid-priced, good quality "homey" hotel. It is open only during

Q : What is Direct Cost Direct Cost : The

Direct Cost: The cost of resources directly used by an activity. The direct costs are assigned to actions by direct drawing of units of resources used by individual actions. A cost which is particularly recognized with a single cost o

Q : What find out the size of this loss

What find out the size of this loss? The size of the deadweight loss is based on the elasticity of supply and demand. As the elasticity of demand increases and the elasticity of supply decreases, that means as sup

Q : Management accounting and financial

What does the difference between management accounting and financial accounting suggest?

Q : Explain Full-Absorption Costing

Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

Q : Why wealth creation is a longer-term

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

Q : Explain Performance Measurement

Performance Measurement: A means of computing effectiveness, efficiency, and outcomes. A balanced performance measurement score-card comprises financial and non-financial measures focusing on the quality, cycle-time, and price. The performance measure

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 1448152 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1929130
Asked

3,689

Active Tutors

1448152

Questions
Answered

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

Submit Assignment