Question

Monique buys a new television for​ $795. she receives consumer surplus of​ $355 from the purchase. how much does monique value her​ television?

Answer 1

The value of the television for Monique is the same as the amount that Moniques is willing to pay for the television. We calculate this amount from the definition of consumer surplus. This term is a measure of consumer benefit. It is equal to the difference of the amount that the consumer is willing to pay for a certain good or service and the amount that the consumer really paid or the real price of the product or service. From this definition, we can calculate the value of the television for Monique.

Consumer surplus = value for monique - value paid
$ 355= Value for Monique - $ 795
Value of the television for Monique = $ 1150