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1. Suppose a recreational inverse demand function is represented by C = 1300-250Q + 100EQ, where Q represents number of annual visits to a campground site, C represents travel cost to the site in dollars, and EQ is an index of the campground's environmental quality. (a) How many annual trips to the campground will be made by visitors with a travel cost per trip equal to $400 if the campground's environmental quality is zero? How much consumer surplus will they receive? Do NOT round any values when computing CS. Draw a graph showing the number of trips and the area of consumer surplus. (b) Suppose that a project to clean up the campground increases its environmental quality from 0 to 3. How many annual trips will now be made by those with a travel cost of $400 per trip? Illustrate this in your graph for part (a). (c) What is the estimated benefit of the clean-up project to all potential visitors to the campground (not just to those with a travel cost of $400 per trip)? Do NOT round any values when computing the estimated benefit. Clearly identify this area in your graph.

1. Suppose a recreational inverse demand function is represented by C = 1300-250Q + 100EQ, where Q represents number of annual visits to a campground site, C represents travel cost to the site in dollars, and EQ is an index of the campground's environmental quality. (a) How many annual trips to the campground will be made by visitors with a travel cost per trip equal to $400 if the campground's environmental quality is zero? How much consumer surplus will they receive? Do NOT round any values when computing CS. Draw a graph showing the number of trips and the area of consumer surplus. (b) Suppose that a project to clean up the campground increases its environmental quality from 0 to 3. How many annual trips will now be made by those with a travel cost of $400 per trip? Illustrate this in your graph for part (a). (c) What is the estimated benefit of the clean-up project to all potential visitors to the campground (not just to those with a travel cost of $400 per trip)? Do NOT round any values when computing the estimated benefit. Clearly identify this area in your graph.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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1. Suppose a recreational inverse demand function is represented by C= 1300 - 250Q + 100EQ, where Q represents number of annual visits to a campground site, C represents travel cost to the site in dollars, and EQ is an index of the campground's environmental quality. (a) How many annual trips to the campground will be made by visitors with a travel cost per trip equal to $400 if the campground's environmental quality is zero? How much consumer surplus will they receive? Do NOT round any values when computing CS. Draw a graph showing the number of trips and the area of consumer surplus. (b) Suppose that a project to clean up the campground increases its environmental quality from 0 to 3. How many annual trips will now be made by those with a travel cost of $400 per trip? Illustrate this in your graph for part (a). (c) What is the estimated benefit of the clean-up project to all potential visitors to the campground (not just to those with a travel cost of $400 per trip)? Do NOT round any values when computing the estimated benefit. Clearly identify this area in your graph.
Transcribed Image Text:1. Suppose a recreational inverse demand function is represented by C= 1300 - 250Q + 100EQ, where Q represents number of annual visits to a campground site, C represents travel cost to the site in dollars, and EQ is an index of the campground's environmental quality. (a) How many annual trips to the campground will be made by visitors with a travel cost per trip equal to $400 if the campground's environmental quality is zero? How much consumer surplus will they receive? Do NOT round any values when computing CS. Draw a graph showing the number of trips and the area of consumer surplus. (b) Suppose that a project to clean up the campground increases its environmental quality from 0 to 3. How many annual trips will now be made by those with a travel cost of $400 per trip? Illustrate this in your graph for part (a). (c) What is the estimated benefit of the clean-up project to all potential visitors to the campground (not just to those with a travel cost of $400 per trip)? Do NOT round any values when computing the estimated benefit. Clearly identify this area in your graph.
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