Question

Suppose the government places a per-barrel unit tax on suppliers of oil. The oil market has a positively sloped supply curve and a negatively sloped demand curve. Who will bear the economic incidence (burden) of this tax? A. The suppliers of oil will bear the entire burden. B. If supply is relatively more price elastic than demand, then suppliers will bear most of the burden. C. If supply is relatively more price elastic than demand, then consumers will bear most of the burden. D. The consumers of oil will bear the entire burden. E. Suppliers and consumers will share the burden equally,