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, the

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