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


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS