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.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