Consider Two Increasing Cost Competitive Industries (A and B)having Identical

Multiple Choice

Consider two increasing cost competitive industries (A and B) having identical demand curves.However,the supply curve faced by industry A is more inelastic than the supply curve of industry B.Which of the following is true if a per-unit excise tax is levied on the output of both the industries?

A) The consumers of industry A's product will bear a greater burden of the tax than the producers.
B) The consumers of industry A's product will bear a smaller burden of the tax than the producers.
C) The consumers of industry B's product will bear a smaller burden of the tax than the consumers of industry A.
D) The consumers of industry B's product will bear the entire burden of the tax imposed on that product.