The government wants to raise a fixed amount of tax revenue by imposing an excise tax in the market for beer and/or in the market for wine. Assume that the supply is perfectly elastic in the two markets, that neither the demand for beer nor the demand for wine are perfectly elastic, but that the demand for wine is more elastic than the demand for beer. In that case, which of the four statements below will be correct:

(i) It would be more efficient for the government to impose a tax in the market for beer only.

(ii) It would be more efficient for the government to impose a tax in the market for wine only.

(iii) It would be more efficient for the government to impose a tax in both markets with a higher tax in the market for beer.

(iv) It would be more efficient for the government to impose a tax in both markets with a higher tax in the market for wine.

Make sure to explain your answer.