Phil and Lasca have always wanted to take a cruise.Although willing to pay $5,000 for a Caribbean cruise for two,they were able to purchase a cruise vacation for two for $3,500.Their total consumer surplus amounted to:
A) $750.
B) $5,000.
C) $1,500.
D) $3,500.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid.

In this case, Phil and Lasca were willing to pay $5,000 for a cruise but were able to purchase one for $3,500.

Therefore, their consumer surplus is:

$5,000 - $3,500 = $1,500

So, the correct answer is choice C.

Phil and Lasca Have Always Wanted to Take a Cruise