6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $500, what would her consumer surplus have been. c. If the price of an iPhone were $900, what would her consumer surplus have been?

6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $500, what would her consumer surplus have been. c. If the price of an iPhone were $900, what would her consumer surplus have been?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160.
a. What is her willingness to pay?
b. If she had bought the iPhone on sale for $500, what would her
consumer surplus have been.
c. If the price of an iPhone were $900, what would her consumer
surplus have been?
7. The demand schedule for toasters, is given below. The price of toasters is $20.
a. Graph the demand curve to scale and identify the area that represents the
consumer surplus
QD
(millions)
P
($)
120
10
100
20
80
30
60
40
40
50
20
60
b. Calculate the consumer surplus for toasters.
DFocus
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144
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