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

Multiple Choice

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.