Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?

When a consumer is able and willing to buy a good or service, s/he creates ____________ .

a. consumption b. demand c. elasticity d. allocation

Because markets may not clear for several months or even several years, the classical model

a. is no longer considered valuable by mainstream economists b. has no value when explaining a situation where excess supply exists c. is irrelevant to any discussion of a market in which excess demand exists d. does a better job of explaining short-term fluctuations than long-run growth e. does a better job of explaining long-run growth than short-run fluctuations