Answer:
The correct answer is: $280.
Explanation:
Consumer Surplus is an economic measure of consumer satisfaction which is calculated by analyzing the difference between what consumers are willing to pay for a good or service, relative to its market price. A consumer surplus occurs when a consumer is willing to pay more for a given product than the current market price.
In the example:
Consumer surplus = Consumer willingness to pay - Current market price
$80 = Consumer willingness to pay - $200
$280 = Consumer willingness to pay
Melissa is willing to pay $280 for the phone.
