If Johnny Is Willing to Pay Up to $3 for an Ice-Cream

question 126

Multiple Choice

If Johnny is willing to pay up to $3 for an ice-cream cone but she actually pays $1 for it. The consumer surplus of the ice-cream cone for Johnny

• A) is $1.
• B) is $2.
• C) is $4.
• D) cannot be determined without information about the market structure.

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Definitions:

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles and is involved in various biological rhythms.

Secreted

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.

Darkness

The absence of light in an environment, affecting visibility and perception.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours.