It is about travel method problem. You have been commissioned to estimate the demand curve for admission to EuroLand, an amusement park in France. To do this, you spend a day surveying visi tors to the park. Before doing this, you divide the area around the park into 10 zones with the distance from the park approximately constant within a zone. You ask each person you interview where they come from. Based on that information, and figures on annual attendance at the park, you are able to calculate the annual number of visitors from each zone. Your data are shown below: (table) Zone Distance from park (km) Zonal population Number of visitors 1 10 5,000 500 2 20 10,000 900 3 30 25,000 2,000 4 40 10,000 700 5 50 100,000 6,000 6 60 500,000 25,000 7 70 200,000 8,000 8 80 50,000 1,500 9 90 100,000 2,000 10 100 100,000 1,000 You note that admission to Euroland is 150 euros per person. you also calculate that transportation costs, including time costs, are approximately 1/2 euro per person per kilometer in each direction. Igonore the value of time in the park. Calculate the demand curve for visits to euroland, showing visits as a function of the entry price. How may few visitors would you expect there to be if the management raised the admission fee to 200euros?
It is about travel method problem.
You have been commissioned to estimate the demand curve for admission to EuroLand, an amusement park in France. To do this, you spend a day surveying visi tors to the park. Before doing this, you divide the area around the park into 10 zones with the distance from the park approximately constant within a zone. You ask each person you interview where they come from. Based on that information, and figures on annual attendance at the park, you are able to calculate the annual number of visitors from each zone. Your data are shown below: (table)
| Zone | Distance from park (km) | Zonal population | Number of visitors |
| 1 | 10 | 5,000 | 500 |
| 2 | 20 | 10,000 | 900 |
| 3 | 30 | 25,000 | 2,000 |
| 4 | 40 | 10,000 | 700 |
| 5 | 50 | 100,000 | 6,000 |
| 6 | 60 | 500,000 | 25,000 |
| 7 | 70 | 200,000 | 8,000 |
| 8 | 80 | 50,000 | 1,500 |
| 9 | 90 | 100,000 | 2,000 |
| 10 | 100 | 100,000 | 1,000 |
You note that admission to Euroland is 150 euros per person. you also calculate that transportation costs, including time costs, are approximately 1/2 euro per person per kilometer in each direction.
Igonore the value of time in the park.
Calculate the demand curve for visits to euroland, showing visits as a function of the entry
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