6. Consumer Surplus Cho buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is If she had bought the iPhone on sale for $180, her consumer surplus would have been If the price of the iPhone had been $420, her consumer surplus would have been S

6. Consumer Surplus Cho buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is If she had bought the iPhone on sale for $180, her consumer surplus would have been If the price of the iPhone had been $420, her consumer surplus would have been S

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 3.7P

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Question

6. Consumer Surplus
Cho buys an iPhone for $240 and gets a consumer surplus of $160.
Her willingness to pay for an iPhone is
If she had bought the iPhone on sale for $180, her consumer surplus would have been
If the price of the iPhone had been $420, her consumer surplus would have been S

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Step 1: Define consumer surplus(CS)

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Step 2: Determine the willingness to pay

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Step 3: Determine the consumer surplus when the price is $180

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Step 4: Determine the consumer surplus when the price is $420

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