Alice Is Willing to Pay $3 for the Second Slice

question 281

Multiple Choice

Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals

• A) $0.
• B) $1.
• C) $2.
• D) $3.

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Definitions:

Random Assignment

Random assignment is a method used in experiments to assign participants or subjects to different groups in a way that is completely by chance, ensuring the groups are statistically similar in all respects at the start of the experiment.

Quasi-experimental Design

An empirical study used to estimate the causal impact of an intervention on target population without random assignment. It is a rephrased definition highlighting its purpose for estimating causal relations.

True Experiments

Experimental designs in which the researcher manipulates the independent variable to observe its effect on a dependent variable, with random assignment to control and experimental groups.

Nutritional Benefits

Refers to the advantageous aspects of food substances that contribute to overall health and well-being, including support for body functions, energy, and disease prevention.