E. The Grinch, wanting work outside of the holiday season, decides to take charge of tax legislation in Whoville. In deciding the good(s) on which he will levy taxes, he has only one goal: ensure the outcome isnotefficient. Assume there are no externalities. Which of the following goods would meet the Grinch's taxing criteria?

1.Sales of Epipens (Inelastic supply, perfectly inelastic demand)

2.Sales of Playstation 4s (Unit-elastic supply, unit-elastic demand)

3.Sales of artificial maple syrup (Elastic supply, perfectly elastic demand)

1. 2. only

2. 3. only

3. 2. and 3.

4. 1. and 2.

5. 1. and 3

6. 1. only

7. 1., 2. and 3.