The U.S. market for rice is shown below. The world price of rice is $12 per bushel and the U.S. can buy all of the rice that it wants at that price. The government places a tax on imported rice of $2 per bushel. Show the effect of this tax on the graph above. What will happen to the amount of rice the U.S. imports?

Question

The U.S. market for rice is shown below.  The world price of rice is $12 per bushel and the U.S. can buy all of the rice that it wants at that price. The government places a tax on imported rice of $2 per bushel. Show the effect of this tax on the graph above. What will happen to the amount of rice the U.S. imports?

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The Answer of The U.S. market for rice is shown below.  The world price of rice is $12 per bushel and the U.S. can buy all of the rice that it wants at that price. The government places a tax on imported rice of $2 per bushel. Show the effect of this tax on the graph above. What will happen to the amount of rice the U.S. imports?

The US Market for Rice Is Shown Below