A perfectly elastic demand curve has an elasticity coefficient of:

Which of the following statements is correct regarding the imposition of a tax on gasoline? a. The incidence of the tax always falls on the buyer

b. The incidence of the tax depends upon the price elasticities of demand and supply. c. The incidence of the tax always falls on the sellers. d. The oil company will ultimately pay.

One reason why individuals with greater ability often receive higher wage rates is that they

a. face discrimination b. have low marginal products c. have high marginal revenue products d. face diminishing marginal returns e. often are employed in industries experiencing economies of scale