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?

Your question asks what Brett values his cell phone as.

In order to get the answer for this question, we need to gather information that's provided in the question.

Key information:

With the information above, we can figure out the answer for the question.

Since Brett bought the phone for $1000, Brett would count the $100 towards the value of his cell phone.

A consumer surplus is the lowest price someone is asking for. Therefore, there is someone that's selling the phone for $180 dollars, but then they sold it for a cheaper price. In the question, it says that he received $80 from the surplus, due to the fact that he got the phone for a cheaper price than it originally costed, so he will add that to the value of his phone.

When you do simple math:

100 + 80 = 180

This means that Brett would value his phone at $180.

$180 should be your FINAL answer

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