An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when: Group of answer choices the supply of the product is relatively inelastic. the supply of the product is relatively elastic. the demand for the product is relatively elastic. either a or c is true.

the demand for the product is relatively elastic

Explanation:

When a product is said to be Elastic, it means that for every 1% change in price, there is a more than 1% change in the Quantity Demanded of that product. For example, if the price of a good rises by 2% and the Quantity Demanded drops by 2.5% that good is considered Elastic.

Now, if an excise tax is intruduced on a good that is Elastic that means that the price would rise and the demand would drop. This will impose a larger burden on suppliers because in an attempt to keep the price relatively stable, they will absorb most of the tax thus reducing their profitability in order to avoid a more than proportional decrease in Quantity Demanded.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total