Question 1: True/False question: Decide whether the following statements are True or False. Explain your reasoningVertical equity is the principle which mostly applied with direct tax.The economic burden of a tax is irrelevant to the statutory incidence.The demand for a good is not affected by the demand for a related good.A fixed sum which a person pays in taxation independent of that person's income, consumption of goods and services or wealth is called lump-sum tax.

Question 1: True/False question: Decide whether the following statements are True or False. Explain your reasoning 1. Vertical equity is the principle which mostly applied with direct tax. 2. The economic burden of a tax is irrelevant to the statutory incidence. 3. The demand for a good is not affected by the demand for a related good. 4. A fixed sum which a person pays in taxation independent of that person's income, consumption of goods and services or wealth is called lump-sum tax