3. Assume a particular type of alcohol is produced in a perfectly competitive market. Its demand is highly inelastic while its supply is highly elastic. The burden of a $2 excise tax on each bottle of this alcohol will therefore be:

A) borne by the resource suppliers who provide the inputs for producing this alcohol

B) shared about equally by buyers and sellers

C) borne primarily by buyers

D) borne primarily by sellers

E) borne by neither buyers nor sellers, but by other participants in the economy

This is because (you might want to draw a graph):