Final answer:
The amount of a per-unit tax paid by the buyer will be larger when the demand is more elastic and the supply is less elastic.
Step-by-step explanation:
The amount of a per-unit tax paid by the buyer will be larger when the demand is more elastic and the supply is less elastic. In this scenario, the demand is more responsive to price changes, meaning that buyers are more likely to decrease their quantity demanded when price increases due to the tax. On the other hand, the supply is less responsive to price changes, so sellers are less likely to increase their quantity supplied when price increases due to the tax.
For example, let's say the government imposes a per-unit tax on a product such as cigarettes. If the demand for cigarettes is more elastic (meaning buyers are sensitive to price changes) and the supply is less elastic (meaning sellers are not very responsive to price changes), then buyers will bear most of the tax burden because they will decrease their quantity demanded more than the sellers will decrease their quantity supplied.
In conclusion, the answer is C. the more elastic the demand and the less elastic the supply.