If Demand Is More Elastic Than Supply Is, the

Multiple Choice

If demand is more elastic than supply is, the

A) smaller the portion of the tax that will be paid by producers
B) larger the portion of the tax that will be paid by consumers
C) more likely it is that the tax will be spread equally between producers and consumers
D) more likely it will be subject to tax evasion by those in the underground economy
E) larger the portion of the tax that will be paid by producers