Arthur buys a new cell phone for $150.He receives consumer surplus of $150 from the purchase.What value does Arthur place on his cell phone?

Name: Arthur buys a new cell phone for $150.He receives consumer surplus of $150 from the purchase.What value does Arthur place on his cell phone?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Arthur's consumer surplus is the difference between what he is willing to pay and what he actually pays. Since he receives a consumer surplus of $150 and paid $150, he values the phone at $300.

Arthur Buys a New Cell Phone for $150