I really don't understand this question, plzz help me out?

Question

If the government imposes an excise tax in a market in which the supply curve is perfectly inelastic, the burden of the tax will fall completely on the _________ and the deadweight loss will equal ________.

A) consumer; zero

B) producers; zero

C) consumers; the government’s tax revenue

D) producers; the government’s tax revenue

Answer 1

Take a look at this picture to help you understand:

http://seattlecentral.edu/faculty/jhuber...

So if there is an excise tax, then the burden falls completely on the producers (consumer surplus will increase), and the deadweight loss is zero.

So, B.

Answer 2

ALMOST all but not all kinds of taxes creates a dwl. Therefore the answer can't be A or B.  I think the answer is would be C because in the end the consumer will be buying product.  Whether the government taxes the producer.  The producer will pass those costs to the consumer.  Remember also that the Quantity is fixed. No matter how much you raise the price consumers will to buy at the point where supply equals demand.

Answer 3

Why don't you call the department in the government that handles your questions?  You may as well get the right information and pay the correct amount.