The Price Elasticity of Demand for Plastic Drinking Straws Is

Multiple Choice

The price elasticity of demand for plastic drinking straws is 3.5, and the price elasticity of supply of plastic drinking straws is 0.8. What can be concluded based on this information?

A) Consumers consider plastic drinking straws to be a necessity.
B) The cost of producing additional units of drinking straws is very high.
C) Consumers consider plastic drinking straws to be normal goods.
D) If a tax were placed on plastic drinking straws, sellers would pay a higher burden of a tax than the buyers would.