The Government Can Choose Between Taxing Buyers of Grapes at $1.00

Multiple Choice

The government can choose between taxing buyers of grapes at $1.00 per pound or taxing the sellers of grapes at $1.00 per pound. Which of the following statements is TRUE?
I. The choice most beneficial to buyers is placing the $1.00 tax on sellers.
II. The choice most beneficial to sellers is placing the $1.00 tax on buyers.
III. Either choice will have the same effect on both buyers and sellers.

A) I and II only
B) III only
C) I only
D) II only