Suppose the Cost of Breaking the Law Is Imposed on the Sellers

Multiple Choice

Suppose the cost of breaking the law is imposed on the sellers of an illegal good.This action will have its biggest impact on quantity if the demand for the good is

A) inelastic or the supply is inelastic.
B) elastic or the supply is elastic.
C) elastic or the supply is inelastic.
D) inelastic or the supply is elastic.
E) perfectly inelastic.