If the demand curve is downward sloping and supply is perfectly elastic, then the burden of an excise tax is ?

Question

If the demand curve is downward sloping and supply is perfectly elastic, then the burden of an excise tax is _______.

a.) borne entirely by consumers

b.) borne entirely by producers

c.) is shared by consumers and producers, with the burden falling mainly on consumers

d.) is shared by consumers and producers, with the burden falling mainly on producers

Answer 1

a.) borne entirely by consumers