The demand for Carlo Rossi wine is relatively elastic since there are many other wines available to choose from. If the government decides to tax just this specific brand of wine, which of the following do you think will occur? (specifically, assume the supply curve is steeper than the demand curve)
a. The majority of the tax will be borne by the producer
b. All of the tax will be passed on to the consumer
c. All of the tax will be borne by the producer
d. The majoiy of thetax willbe bone by the consumer
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