(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. When a good or service is characterized by a relatively elastic demand, as shown in panel _____, the greater share of the burden of a tax on it is borne by _____. 
A) D; buyers
B) D; sellers
C) C; sellers
D) C; buyers
Correct Answer:
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