The Federal Government Has Passed Legislation Requiring That, Starting in February

The federal government has passed legislation requiring that, starting in February 2021, all airlines pay a security fee of $20 for each passenger. Assuming the demand and supply curves in this market have their usual slopes:

A) the airlines will pass the entire fee of $20 to their customers.
B) the airlines and their customers will split the burden of the tax.
C) the airlines will bear the entire burden of the tax.
D) the airlines will raise the price for business travelers.