(Answered) In the market for fertilizer the equilibrium price is 4 per

Economics

In the market for fertilizer, the equilibrium price is $4 per pound, and the equilibrium quantity is 500. At that point, the price elasticity of demand is 2.3, and the price elasticity of supply is 3.4. If a $1 excise tax is imposed in this market, which of the following would you expect to see?

a. The price consumers pay for fertilizer will rise to $5.

b. The consumers will bear more of the burden of the tax than suppliers.

c. The government will make $500 in tax revenue.

d. All of the above

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