1. If a company intends to raise its revenue it should increase the price of its product if the demand is

1. elastic
2. inelastic
3. unitary elastic
4. is perfectly elastic

1. The marginal rate of substitution (MRS)

1. equals the slope of the straight line touching the indifference curve
2. always positive
3. decreases in absolute value as y increases
4. none of the statements are correct.

1. If higher value added tax (VAT) is imposed on a commodity then firms can entirely pass the higher tax on consumers if

1. the demand curve is vertical
2. the demand curve is horizontal
3. the supply curve has positive slope
4. the supply curve has negative slope

1. A decline in the personal income tax rate

1. shifts the supply curve upwards
2. shifts the supply curve downwards
3. shifts the demand curve rightwards
4. shifts the demand curve leftwards