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?

Consider the following statements about impact of tax:1. A tax is shif

1.	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» D. Neither 1 nor 2