Suppose There Is Only One Movie Theatre in a Town

Multiple Choice

Suppose there is only one movie theatre in a town and the equilibrium price and quantity for movie admissions is $9 and 850 visits per week.Now suppose the government imposes a tax such that the new equilibrium price and quantity are $10.50 and 780 visits per week.What is the direct burden of this tax?

A) $0
B) $105
C) $1170
D) $1275
E) There is not enough information to know.