Which of the Following Generalizations About the Burden of an Excise

Multiple Choice

Which of the following generalizations about the burden of an excise tax is correct?

A) The more inelastic the supply of a product, the larger the portion of an excise tax will be paid by buyers.
B) The more inelastic the demand for a product, the larger the portion of an excise tax will be paid by buyers.
C) The more elastic the supply of a product, the smaller the portion of an excise tax will be paid by buyers.
D) The burden of an excise tax on a product is independent of the elasticity of the supply and demand for the product on which the tax is levied.