How much does Arthur value his cell phone if he receives a consumer surplus of $150 from a purchase price of $150?

The value that Arthur places on his cell phone is not just determined by the purchase price but also by the consumer surplus he experiences from that purchase. Consumer surplus is the difference between the maximum amount a buyer is willing to pay for a good or service and the actual amount they pay.

In this case, Arthur pays $150 for the cell phone. He experiences a consumer surplus of $150, meaning that he values the phone at a price that is $150 higher than what he actually paid. Therefore, to find out how much Arthur values his cell phone, you add the amount he paid to the consumer surplus.

This calculation can be represented as follows:

Value of the cell phone = Purchase price + Consumer Surplus Value of the cell phone = $150 + $150 = $300.

Thus, Arthur values his cell phone at $300.