If the Supply Curve Is Perfectly Inelastic and an Excise

Multiple Choice

If the supply curve is perfectly inelastic and an excise tax is imposed

A) all of the tax is paid by buyers
B) all of the tax is paid by sellers
C) the market price will rise by the amount of the tax
D) the market price will fall by the amount of the tax
E) the tax is divided equally between buyers and sellers