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The Following Graph Depicts the Market for CT Scanners in the United

Question 7

Multiple Choice

The following graph depicts the market for CT scanners in the United States. The following graph depicts the market for CT scanners in the United States.   Assume an initial equilibrium at D<sub>1</sub> and S<sub>1</sub> 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. 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.

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