Which of the following is not true in case of incidence of tax:
1
Imposition of tax raises price and lowers quantity.
2
The resulting price increase of tax rise will be dampened if the tax is imposed in monopolistic market.
3
One would be in a better position to avoid the tax and leave the seller with a larger part if demand is inelastic while supply is elastic.
4
A unit tax enters through a parallel upward shift in the supply schedule.