Consider the two markets, A and B, whose Demand and Supply curves are depicted in the diagram below. P ID S S POA PB . . . . . . . . D . . Q A Q Q Market A Market B Assume both markets are initially in equilibrium with identical equilibrium prices (PoA=Po) and identical equilibrium quantities (Qo-=Qo ). The government then imposes an excise tax of $1/unit on goods traded in both markets. Which of the following statements is true? Please select the best response. The incidence of the tax on consumers is higher in Market B than in Market A. The incidence of the tax on producers is lower in Market A than in Market B. The price elasticity of demand is relatively higher in Market B compared to Market A O None of the above statements is true