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05.07.2022 - 12:30

Melissa buys an iPhone for $280 and gets a consumer surplus of $120. What was her willingness to pay?

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Melissa buys an iPhone for $280 and gets a consumer surplus of $120. What was her willingness to pay?

Answers (1)

Idell April 4, 2023 в 11:12

Melissa's willingness to pay for the iPhone is $400. Consumer surplus is the difference between the price paid and the maximum price a consumer is willing to pay for a good or service. Therefore, if Melissa gets a consumer surplus of $120, it means she was willing to pay $400 for the iPhone ($280 + $120 = $400).

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