Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

A) demand is perfectly elastic.
B) supply is perfectly elastic.
C) supply and demand have the same price elasticity.
D) demand is perfectly inelastic.

Sales Tax

A tax levied on the sale of goods and services, typically calculated as a percentage of the purchase price.

Perfectly Elastic

A situation in demand where consumers will buy an infinite quantity of goods at a certain price but none if the price increases even slightly.

Perfectly Inelastic

A demand situation where the quantity demanded does not change regardless of the price level.