Consider the following statements: 1. Burden of a tax on a commodity is independent of who (buyer or seller) it is explicitly imposed upon 2. Burden of a tax on a commodity depends on the slope of the demand and supply curves

Statement 1 is correct because the economic incidence of a tax is independent of its statutory incidence. The side of the market on which a tax is legally imposed (buyer or seller) is irrelevant to the final distribution of the tax burden. Market adjustments, such as price changes, ensure that the ultimate burden is shared based on market forces rather than legal obligation. Statement 2 is also correct as the tax burden depends on the relative elasticities of the demand and supply curves. Elasticity is mathematically represented by the slope of these curves; parties with more inelastic (steeper) curves bear a larger share of the tax because they are less responsive to price changes. Conversely, parties with elastic (flatter) curves can more easily avoid the tax by adjusting their quantity demanded or supplied. Thus, both statements accurately reflect the principles of tax incidence.