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A few years ago, the city of Seattle, Washington, considered imposing a specific tax on all espresso$-$based coffee drinks sold in the city. The extra tax revenue generated would have been used to fund after$-$school programs for low$-$income children. The coffee$-$house owners $($firms$)$ agreed that this would be a good program to fund, but they argued that the tax would sharply reduce their sales volume and they would pay most of the tax burden. This claim is true if:

Select one:

a$.$ the demand for espresso$-$based coffee is more elastic than supply.

b$.$ espresso$-$based coffee drinks can be produced at constant marginal cost.

c$.$ the demand for espresso$-$based coffee is more inelastic than supply.

d$.$ there are no close substitutes for espresso$-$based coffee drinks.