Multiple Choice
The following graph depicts the market for CT scanners in the United States. Assume an initial equilibrium at D1 and S1 with price of $200,000 per machine.If the government places a $20,000 excise tax on each new scanner sold, the new equilibrium price will be
A) at least $220,000.
B) exactly $220,000.
C) less than $220,000.
D) there's not enough information to determine what the new price will be.
Correct Answer:

Verified
Correct Answer:
Verified
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