Figure: Commodity Tax with Elastic Demand According to the Figure

Multiple Choice

Figure: Commodity Tax with Elastic Demand According to the figure, who bears the greater burden of a commodity tax?

A) The buyer will bear the greater burden of the tax.
B) The seller will bear the greater burden of the tax.
C) The buyer and the seller will split the tax burden equally.
D) The government will bear the full burden of the tax.