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 visi- tors from each zone. Your data are shown below: Number of visitors Distance from Zonal population park (km) Zone 500 5,000 10 1 10,000 900 20 2 2,000 25,000 30 3 700 10,000 40 4 6,000 100,000 50 25,000 500,000 60 6 8,000 200,000 70 7 50,000 1,500 80 8 2,000 100,000 90 9 1,000 100,000 100 10 You note that admission to EuroLand is 150 euros per person. You also calculate hat transportation costs, including time costs, are approximately 1/2 euro per person ber kilometer in each direction. Ignore the value of time in the park Calculate the demand curve for visits to EuroLand, showing visits as a function of he entry price. How many fewer visitors would you expect there to be if the manage- nent raised the admission fee to 200 euros?

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 visi- tors from each zone. Your data are shown below: Number of visitors Distance from Zonal population park (km) Zone 500 5,000 10 1 10,000 900 20 2 2,000 25,000 30 3 700 10,000 40 4 6,000 100,000 50 25,000 500,000 60 6 8,000 200,000 70 7 50,000 1,500 80 8 2,000 100,000 90 9 1,000 100,000 100 10 You note that admission to EuroLand is 150 euros per person. You also calculate hat transportation costs, including time costs, are approximately 1/2 euro per person ber kilometer in each direction. Ignore the value of time in the park Calculate the demand curve for visits to EuroLand, showing visits as a function of he entry price. How many fewer visitors would you expect there to be if the manage- nent raised the admission fee to 200 euros?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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