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

a) What is his willingness to pay?

User Anemo
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1 Answer

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Final answer:

The willingness to pay for the iPhone can be calculated by subtracting the consumer surplus from the price.

Step-by-step explanation:

The willingness to pay can be determined by subtracting the consumer surplus from the price of the iPhone. In this case, Kris bought the iPhone for $240 and had a consumer surplus of $160. Therefore, his willingness to pay can be calculated as:



Willingness to Pay = Price - Consumer Surplus



Willingness to Pay = $240 - $160 = $80



So, Kris' willingness to pay for the iPhone is $80.

User Vandernath
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