Question: Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $ 7 . Suppose further that the

Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $7. Suppose further that the price elasticity of demand for sofas is 0.6 and the price elasticity of supply for them is 0.8. It can be concluded with certainty that the amount of the excise tax was
Select one:
A. less than $7.
B. $7.
C. greater than $7 but less than $14.
D. $14.
E. greater than $14.
Suppose that after an excise tax was imposed on

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