(Figure: The Incidence of Tax and Elasticities) Use Figure: The Incidence of Tax and Elasticities. Each panel below shows the application of a tax that raises the price from P1 to P2. Consumers are likely to bear most of the burden of a tax in the situations illustrated by panels:
A) A and B.
B) A and D.
C) B and D.
D) B and C.
Correct Answer:
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