The more inelastic are demand and supply, the

A) larger is the efficiency loss of an excise tax.
B) smaller is the efficiency loss of an excise tax.
C) higher is the proportion of an excise tax paid by consumers.
D) smaller is the proportion of an excise tax paid by producers.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved or is interfered with.

Excise Tax

A tax imposed on the sale of specific goods or services, often included in the price of the product, such as tobacco or alcohol.

Inelastic

Pertains to a scenario where the level of demand or supply for a product or service shows little reaction to price fluctuations.