If the Demand for Liquor Is Elastic,and the Government Increases

Multiple Choice

If the demand for liquor is elastic,and the government increases liquor tax,then _____.

A) most of the tax will be paid by the consumer
B) most of the tax will be paid by the producer
C) all of the tax will be paid by the consumer
D) all of the tax will be paid by the producer
E) the tax will be paid by the retailer