Assume an initial equilibrium at D1 and Sp with a price of $1.20 million per machine. If the govemment places a $100,000 excise tax on each new scanner sold, the new equilibrium price will be?

a) exactly $1.30 million. b)the same and stay at $1.30 million to increase demand. C) at least $1.30 million. d)less than $1.30 million.