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? A. $1250 B. $1750 C. $1500 D. $250
Question
Amy buys a new computer for her studies for 250 from the purchase. How much does Amy value her computer? A. 1750 C. 250
Solution
Amy values her computer at 1500 for the computer and received a consumer surplus of 1500 + 1750 for the computer. So, the correct answer is B. $1750.
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