Question

figure 4 - 1
figure 4 - 1 shows kendras demand for ice - cream cones curve.
refer to figure 4 - 1. if the market price is $3.00, what is kendras consumer surplus?
$9.00
$7.50
$0.50
$0
question 37 1 pts
brett buys a new cell phone for $100. he receives consumer surplus of $80 from the purchase. how much does brett value his cell phone?
$180
$100
$80
$20

Explanation:

Step1: Recall the formula for consumer surplus

Consumer surplus is calculated as the value a consumer places on a good minus the price paid for it. The formula is \(Consumer\ Surplus = Value - Price\).

Step2: Rearrange the formula to find the value

We can rearrange the formula to \(Value=Consumer\ Surplus + Price\).

Step3: Substitute the given values

Given that the price \(P = 100\) and the consumer surplus \(CS=80\). Substitute these values into the formula: \(Value = 80+100\).

Answer:

\(180\)