Suppose the Government Places a Large Tax on the Profits

Suppose the government places a large tax on the profits of companies that manufacture and sell cigarettes. Which statement is the MOST valid?

A) Much of the tax burden will be borne by shareholders in the form of lower profits because buyers will not be willing to pay higher prices.
B) Much of the tax burden will have no effect on quantity supplied because the supply curve is perfectly inelastic, even in the long run.
C) Much of the tax burden will be passed on to consumers in the form of higher prices because demand is inelastic.
D) Much of the tax burden will be absorbed by tobacco farmers because there are few manufacturers to whom they sell their crops.