The Price Elasticity of Demand for Lychee Fruit Is 1

Multiple Choice

The price elasticity of demand for lychee fruit is 1.3, while the price elasticity of supply is 0.7. The incidence of a $0.25 excise tax placed on lychee fruit will be

A) higher for producers.
B) higher for consumers.
C) equal for producers and consumers.
D) nonexistent for both producers and consumers.