A $10 per-unit tax on MP₃ players raises the equilibrium price paid by consumers by $5. The quantity sold before the tax was 5,000 per year. The revenue from the tax is
A)zero.
B)positive but less than $50,000 per year.
C)$50,000 per year.
D)more than $50,000 per year.
E)greater the more elastic is demand.

Question

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The Answer of A $10 per-unit tax on MP₃ players raises the equilibrium price paid by consumers by $5. The quantity sold before the tax was 5,000 per year. The revenue from the tax is
A)zero.
B)positive but less than $50,000 per year.
C)$50,000 per year.
D)more than $50,000 per year.
E)greater the more elastic is demand.

A $10 Per-Unit Tax on MP₃ Players Raises the Equilibrium