Question

Consider the following statements about impact of tax :
1. A tax is shifted forward to consumers if the demand is inelastic relative to supply.
2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand.
Which of the statements given above is/are correct?
A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

Answer 1

1 is answers forward to comment

Answer 2

Explanation:

प्लीज कॉल मी एंड एंड क्वेश्चन एंड आंसर द आंसर इज रामू गोइंग टू द मार्केट