Statement I: the Lowering of the Tax on Gasoline Will

Multiple Choice

Statement I: The lowering of the tax on gasoline will increase the supply of gasoline.
Statement II: When demand is perfectly elastic,a tax burden will be borne entirely by buyers.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.