A government raised a particular tax on shoes. The subsequent increase in shoe prices was paid mainly by consumers rather than by producers. What must be true for this to occur?
- AThe price elasticity of demand was less than the price elasticity of supply.
- BThe price elasticity of demand was unitary.
- CThe price elasticity of supply was less than one.
- DThe price elasticity of supply was inelastic while the price elasticity of demand was elastic.