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

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Q: 108 (CAPF/2024)
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

question_subject: 

Economics

question_exam: 

CAPF

The tax burden distribution between buyers and sellers typically depends on the elasticity of demand and supply, not necessarily on whom it is imposed. Thus, both statements are correct.