23. Say that a new tax is imposed on sellers of cigarettes of $1 per pack. The old equilibrium price of cigarettes was $5 a pack. The new equilibrium price is $5.75 a pack.

Which of the following statements is true?

A. The consumer bears 25% of the tax, and the seller bears 75%

B. The consumer bears 75% of the tax, and the seller bears 25%

C. The cigarette sellers will simply pass the entire tax onto the consumer

D. The cigarette sellers will not be able to pass any of the tax onto the consumer

From the information given, we can assume:.

A. The demand for cigarettes is unit elastic

B. The demand for cigarettes is inelastic

C. The demand for cigarettes is elastic.

If the new equilibrium price in this situation had been $6, it would imply:

A. The demand for cigarettes is perfectly inelastic

B. The demand for cigarettes is perfectly elastic

C. The demand for cigarettes is perfectly unit elastic.

If the new equilibrium price in this situation had been $5, it would imply:

A. The demand for cigarettes is perfectly unit elastic.

B. The demand for cigarettes is perfectly inelastic.

C. The demand for cigarettes is perfectly elastic.