The state of California recently considered passing a tax on the services of doctors in that state in order to raise revenue to pay for universal…
1. The state of California recently considered passing a tax on the services of doctors in that statein order to raise revenue to pay for universal health coverage for California residents. Supposethe average open heart surgery costs $100,000, and at that price 23,339 surgeries are performedeach year. Fully explain what the most likely outcome would be in this market if a tax onsurgeries is implemented. Use a graph if it will help.
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