Suppose a Tax Is Imposed on Bananas

Multiple Choice

Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?

A) The response of buyers to a change in the price of bananas is strong, and the response of sellers to a change in the price of bananas is weak.
B) The response of sellers to a change in the price of bananas is strong, and the response of buyers to a change in the price of bananas is weak.
C) The response of buyers and sellers to a change in the price of bananas is strong.
D) The response of buyers and sellers to a change in the price of bananas is weak.