In which of these scenarios is the burden of the tax greater on buyers than on sellers? AA BB C C DD B D

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Q: What determines whether the buyer or seller pays the bulk of the tax?

A: The incidence of tax depends on the relative price elasticity of demand and supply.

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Q: How does a tax on sellers affect the market equilibrium?

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Q: In which of these scenarios is the deadweight loss of the tax largest? A A BB с с DD B a.m

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