Suppose Supply Is Perfectly Inelastic, While Demand Is Relatively Elastic

Multiple Choice

Suppose supply is perfectly inelastic, while demand is relatively elastic.A tax of $1.00 is levied on the purchasers of the good.Which of the following statements is correct?

A) the government will fail to raise any tax revenue
B) there will be a positive deadweight loss
C) there will be no deadweight loss
D) government revenue will be less than the deadweight loss of the tax.