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

question 13

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.

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Definitions:

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Offerings or donations given by individuals or entities, typically for charitable purposes or to support a cause.

Total Compensation

The complete package of salary, bonuses, benefits, and any other form of compensation given to employees.

Involuntary Turnover

The termination of employees from their job for reasons beyond their control, such as layoffs or dismissals.

Voluntary Turnover

Occurs when employees choose to leave a company for personal reasons, such as a new job opportunity or relocation.