--%>

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 : How useful is the management accounting

    Briefly define how useful is the management accounting information is?

  • Q : What is Outputs Outputs : Any product

    Outputs: Any product or service formed from the consumption of resources. This can comprise information or paper work produced by the completion of the tasks of an activity.

  • 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 : Market Analysis and Logic 1.

      1. Contribution After Marketing Assume that the sales forecast for brand TOJO is 160,000 units, and that you expect to sell 50% of these units through mass merchandisers,

  • Q : Define Traceability Traceability : The

    Traceability: The capability to assign a cost directly to a particular activity or cost object by identifying or observing particular resources used by the activity or cost object.

  • Q : Accounting Information Systems &

    You must prove your calculations The following information pertains to Blue Company revenue cycle and was reported at December 31, 2011. Year 2011, additional information is as follows: 1.       100 units that was purchased fo

  • Q : Evaluate the strategic options Identify

    Identify and evaluate the strategic options in brief?

  • Q : Management accounting and financial

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

  • Q : Define Common Cost Common Cost : It is

    Common Cost: It is the cost of resources used jointly in the production of two or more outputs and the cost can’t be directly traced to any one of those outcomes.

  • Q : Break-even point The operating level at

    The operating level at which the total sales revenue equals the total cost. Total sale revenue is equal to the price per unit times the number of units sold. Total cost equals total variable cost, the number of units sold in time the variable cost per unit and the tot