Answer
c) workers bear some of the burden of the tax
Work Step by Step
If the government raises the tax on a company, the tax initially hurts the owner of the company. Since producing goods would earn less profit, the owner invests less in building additional factories. With fewer factories, the supply of the good declines.
In turn, the demand for workers declines. Thus, the tax on a company will cause the price of the good to increase and the wages to workers to fall.
