The greater the elasticity of supply of and demand for a good, the

A) smaller will be the efficiency loss of an excise tax on the good.
B) more likely the good will be a public good rather than a private good.
C) larger will be the efficiency loss of an excise tax on the good.
D) larger will be the proportion of an excise tax on the good that will be shifted forward to consumers.

Efficiency Loss

Refers to the waste of resources that occurs when market conditions prevent the allocation of resources in a way that maximizes utility or welfare.

Elasticity of Supply

A measure of the responsiveness of the quantity supplied of a good or service to a change in its price, indicating how producers react to price variations.

Elasticity of Demand

A measure indicating how much the quantity demanded of a good changes in response to a change in the price of that good.