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Melissa buys an iPhone for 240 and gets a consumer surplus of 160.

1. What is her willingness to pay?

2. If she bought the iPhone for $180, what would her consumer surplus have been?

3. If an iPhone's price were $500, what would her consumer surplus have been?

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manhokwe tawanda
manhokwe tawandaLv10
28 Jan 2021

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Related questions

True or False:

1. Consumer surplus is the buyer's willingness-to-pay minus the seller's opportunity cost of production.

2. If your willingness-to-pay for a hamburger is $3 and you paid $2, then your consumer surplus is $5.00

3. The opportunity cost of production for a seller includes the implicit cost of the seller's time.

4. The height of the supply curve at a selected quantity is the seller's opportunity cost of producing that marginal unit.

5. Total surplus (total well-being) is the seller's cost of production minus the buyer's willingness-to-pay.

6. The competitive market equilibrium outcome is efficient because it allocates the produced output to the buyers who place the highest value on the good

7. Producer surplus is the area above the supply curve and below the price.

8. The competitive market equilibrium outcome maximizes total surplus (total well-being)

9. Producing and consuming more of a good will always increase the total surplus(total well-being).

Consumers Jane Steve Jill George Betty Andy Maximum Willingness to Pay | $20 $17 $16 $14 $11 $9 The above table shows the maximum willingness to pay of all the consumers in the E201 T-shirt market. Assume that no consumer would buy more than one T-shirt and they cannot buy a fraction of a T-shirt. What is the total consumer surplus if the market price is $12? A. $15

2. An increase in the consumer surplus in the market for milkshakes may result from: A) an increase in the price of milkshakes. B) an increase in the supply of milkshakes. C) a decrease in the demand for milkshakes. D a decrease in the supply of milkshakes. Use the following to answer questions 3-5. Table: Consumer Surplus and Phantom Tickets Student Willingness to Pay Jessica $150 Jacquelyn 125 Brad 105 Robert Gwen 25

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