2.

Steven buys an iPhone for $550 and gets a consumer surplus of $80.

3.1. What is Steven's willingness to pay? Show your calculations.

3.2. What is seller's willingness to sell if the costs of production per iPhone are $385? Show

your calculations.

3.3. If Steven had bought the iPhone on sale for $490, what would his consumer surplus have

been? Show your calculations.

3.4. If the price of an iPhone were $800, what would Steven's consumer surplus have been?

Show your calculations.