Sigrid's Mother Recently Died After a Long Illness

question 12

Multiple Choice

Sigrid's mother recently died after a long illness. Though Sigrid has not attended religious services since she was a child, it is likely that she will _____.

• A) become more religious after being confronted with this death
• B) refuse to attend the funeral
• C) not believe in any sort of life after death
• D) never move past her grief because she does not practice a religion

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Definitions:

Perfectly Inelastic

A situation where the demand or supply for a good or service remains unchanged regardless of changes in its price.

Excise Tax

Is a tax applied on the sale or production for sale of specific goods within a country.

Incidence

Refers to how the burden of a tax is distributed between buyers and sellers in the market.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achievable or not achieved.