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A cruise liner sells two classes of tickets: economy class and first class. They also have identified two types of travelers, whom they call: Luxury
A cruise liner sells two classes of tickets: economy class and first class. They also have identified two types of travelers, whom they call: Luxury Conscious, and Budget Travelers. Based on some market research, they have the following information about these two segments and their willingness to pay (or valuation) for their ticket classes. The table above shows, for example that Luxury Conscious travelers value the economy class ticket at $200 and the first-class ticket at $1000 respectively. If they are only selling the economy class ticket (and not the first class tickets), what is the consumer surplus for the Luxury Conscious at the revenue maximizing price? 900 dollars 200 dollars 150 dollars 100 dollars
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