Phil and Lasca have always wanted to take a cruise. Although willing to pay $5000 for a Caribbean cruise for two, they were able to purchase a cruise vacation for two for $3500. What was their total consumer surplus?
A) $750
B) $1500
C) $3500
D) $5000

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay. In this case, Phil and Lasca were willing to pay $5000 but were able to purchase the cruise for $3500, so their consumer surplus is $1500. Therefore, the best choice is B.

Phil and Lasca Have Always Wanted to Take a Cruise