Arthur buys a new mobile phone for $150.He receives consumer surplus of $150 from the purchase.How much does Arthur value his mobile phone?

Name: Arthur buys a new mobile phone for $150.He receives consumer surplus of $150 from the purchase.How much does Arthur value his mobile phone?
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Question

Quizplus · Accepted Answer

Arthur values his mobile phone at $300 because consumer surplus is the difference between what he is willing to pay ($300) and what he actually pays ($150), which is $150.

Arthur Buys a New Mobile Phone for $150