An article in the Wall Street Journal explained that an increase in demand that began during the Covid–19 pandemic prompted Bacardi Ltd. and Campari to produce more expensive brands of rum. Bacardi sells a brand of rum aged for a minimum of 16 years for \($100\) per bottle. In 2021, Campari began selling a brand of rum aged for 37 years for \($1,100\) per bottle.

a. Molly buys a bottle of Bacardi rum for \($100.\) Mitchell buys a bottle of Campari rum for \($1,100.\) Explain how Molly may have received more consumer surplus for her purchase than Mitchell received from his. Explain how Mitchell may have received more consumer surplus for his purchase than Molly received from hers.

b. The article mentioned that because of an increase in consumer demand, rum producers “hope to benefit from drinkers’ willingness to pay up for pricier booze.”

Describe the difference between an increase in a consumer’s willingness to pay for a bottle of rum and an increase in consumer surplus from the purchase of a bottle of rum.

c. Assume that Mitchell received \($300\) of consumer surplus when he paid \($1,100\) for a bottle of Campari rum aged for 37 years. What was the maximum price Mitchell was willing to pay for the rum?