Answer:
B. buyers bear most of the incidence of the tax.
Explanation:
If demand is inelastic, quantity demanded is insensitive to changes in price.
If supply is elastic, a small change in price has a great effect on quantity supplied. Quantity supplied is sensitive to changes in price.
If a tax is imposed on gasoline, the incidence (who pays for the tax) can be beqred by the consumers because they have an inelastic demand. If the price of gasoline rises , the quantity demanded doesn't change.
If the tax incidence was borne by the suppliers, the quantity supplied would drop.
I hope my answer helps you.
