The Supply of New Cars Is Perfectly Elastic

Multiple Choice

The supply of new cars is perfectly elastic. A $400 per car tax is levied on buyers. As a result of the tax,

A) the price received by sellers will fall by $400.
B) the price paid by buyers, including the tax, will increase by $400.
C) the quantity of cars sold per year will be unchanged.
D) the excess burden of the tax will be zero.
E) both c and d