In the Case of a Per-Unit Tax on a Good

Multiple Choice

In the case of a per-unit tax on a good, which of the following situations will lead to the greatest change in price?

A) Supply and demand are relatively inelastic.
B) Supply and demand are relatively elastic.
C) Demand is relatively elastic and supply is relatively inelastic.
D) Demand is relatively inelastic and supply is relatively elastic.
E) Both supply and demand do not exist.