Answer to Question #195700 in Finance for Adekunle-Ismail Ja

Question #195700

Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80.

What is her willingness to pay?

If she had bought the iPhone on sale for $90, what would her consumer surplus have been?


1
Expert's answer
2021-05-20T18:46:35-0400

1.Melissa's willingness to pay for some good (in our example iPhone) is $200


=(120+ 80). =$200


2. Her consumer surplus would have been $110


=($200 - $90)=$110


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