The supply curve for a product has infinite elasticity. An excise tax is levied on the product. The likely effect will be to
A) reduce the amount the producer receives for each unit sold by the amount of the tax.
B) increase the price the consumer pays per unit by the amount of the tax.
C) increase the price to consumers by an amount less than the tax.
D) increase the amount received by producers by less than the tax.
Correct Answer:
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