In a market where the supply is perfectly inelastic and the demand is elastic, what happens to the price received by producers when a tax is imposed?

• A. The price received by producers decreases by the full amount of the tax.
• B. The price received by producers increases.
• C. The price received by producers decreases by half the amount of the tax.
• D. The price received by producers does not change.

Answer: (A)