If a Tax Is Imposed on a Market with Elastic

Multiple Choice

If a tax is imposed on a market with elastic demand andinelastic supply:

A) buyers will bear most of the burden of the tax.
B) sellers will bear most of the burden of the tax.(True Answer ) Correct
C) the burden of the tax will be shared equally between buyers and sellers.
D) there is no way to determine how the burden of the tax will be shared.