Amy buys a new computer for her studies for $1500.She receives consumer surplus of $250 from the purchase.How much does Amy value her computer?

Question

Quizplus · Accepted Answer

Amy values her computer at $1750 because consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Since she paid $1500 and received a consumer surplus of $250, she values the computer at $1500 + $250 = $1750.

Amy Buys a New Computer for Her Studies for $1500