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5 million pounds of tea were imported into Britain in 1784 on a 119% import tariff. According to the East India Company's accountant, only about a third of all British consumption was legal imports; the remainder was brought in illegally. He was apparently correct, for tea was inelastically demanded, and in 1785 after the reduction of the tariff to a mere 12.5%, the amount of legal tea imported increased to 16 million pounds.

With the implied elasticity of demand for legal tea, and using a straight-line "demand curve" (after smuggling), what was the revenue-maximizing tariff rate?