Phil and Kelly 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

Phil and Kelly 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.

Quizplus · Accepted Answer

Consumer Surplus = willingness to pay - actual price paid
Willingness to pay = $5,000
Actual price paid = $3,500
Consumer Surplus = $5,000 - $3,500 = $1,500. Therefore, the total consumer surplus for Phil and Kelly is $1,500.

Phil and Kelly Have Always Wanted to Take a Cruise