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1) Under a tax, explain the concept of the P(B) or the price the buyer pays and P(S) or the price the seller receives. Why

1) Under a tax, explain the concept of the "P(B)" or the price the buyer pays and "P(S)" or the price the seller receives. Why are these different?

 2) What determines tax incidence? 

 

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Answer Under a tax the concept of PB or the price the buyer pays and PS or the price the seller receives refers to the prices that buyers and sellers ... blur-text-image

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