When a Tax Is Imposed on a Good for Which

Multiple Choice

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

A) ​buyers of the good will incur most of the burden of the tax.
B) ​sellers of the good will incur most of the burden of the tax.
C) ​buyers and sellers will each incur 50 percent of the burden of the tax.
D) ​the equilibrium quantity will increase.