Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Now it is time for your first consulting job as an environmental economist. The Forest Service would like to know whether they should set aside some national forest land, previously slated to be logged, for hiking. You are helping to do a travel-cost analysis to estimate the benefits of setting aside the land.

Survey data have been gathered from 500 hikers who visited a forest in a neighboring state. Using a statistical techniques called regression analysis, you have controlled for differences of income, employment status, age, and other important factors that might affect the number of hiking trips taken. Taking these factors into account, you have developed the following relationship:
Cost to Get to # of Hiking Trips
Hiking Areas Per Person Per Year
$20 8
$40 6
$80 2

A) Assume that the demand for hiking trips can be represented by a straight line. On the basis of the above table, graph the demand curve for hiking trips per person as a function of the price, i.e., the travel cost.

B) Based on the demographic information about the people living in the vicinity of the proposed park, you have estimated that 50,000 people will take an average of four hiking trips per year. find out:
(i) The consumer surplus (access value) for an average visitor.
(ii) The total consumer surplus per year from the proposed park.
(iii) How much would the average visitor be willing to pay in a one-time fee without affecting their average number of visits of four trips per year.
Note: you may answer part (B) either graphically or numerically.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939078

Have any Question? 


Related Questions in Microeconomics

Question - determined that the cost of supplies on hand was

Question - Determined that the cost of supplies on hand was Tk. 1500 and Tk. 1200 of supplies had been used during the month.

Tyler poland is a stock picker responsible for recommending

Tyler Poland is a stock picker responsible for recommending Mexican securities for his brokerage firm's clients. He is often frustrated about the lack of credible information on companies in Mexico. "Everything is always ...

1what is the connection between economic and environmental

1. What is the connection between economic and environmental shocks (e.g. global events, wars, commodity price fluctuations) and changes in money and banking strategy? Highlight specific examples. THESE ARE THE INSTRUCTI ...

Assignmentmicroeconomicsdirections unless otherwise stated

ASSIGNMENT Microeconomics Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four dou ...

Assignment elasticity and its applicationover the last year

Assignment: Elasticity and Its Application Over the last year your boss has noticed that it would be useful for your firm to understand how consumers behave when variables in the market change and how these changes affec ...

Key informationusing the readings supplied critically argue

KEY INFORMATION Using the readings supplied, critically argue in support of a single one of the following interventions to improve housing affordability: 1. Restricting credit to acquire property (e.g. tax added to mortg ...

Discussion questionsanswer both questions 1 and 2 below in

Discussion Questions Answer both questions 1 and 2 below in this same discussion. 1. Research the Microbead-Free Waters Act of 2015 and the Main Street Fairness Act and discuss: • Why do you think the Microbead Act becam ...

Assessmentanswer all questions each is worth 15 marks for

ASSESSMENT: Answer all questions, each is worth 1.5 marks. For detailed assessment criteria see the subject guide, which also explains that the assessment looks at the quality of your answers, not the quantity. You can b ...

Microeconomichow would a low-cost price leader enforce its

Microeconomic How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied thre ...

Discussionapplications and best practices please respond to

Discussion "Applications and Best Practices" Please respond to the following: • Propose two applications of the knowledge that you have learned in this course to your current or a future position. Provide a rationale for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate