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EconomicsQ&A LibraryYou have been commissioned to estimate the demand curve for admission toEuroLand, 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 zoneswith the distance from the park approximately constant within a zone. You ask eachperson you interview where they come from. Based on that information, and figureson 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 ofvisitorsDistance fromZonal populationpark (km)Zone5005,00010110,0009002022,00025,00030370010,0004046,000100,0005025,000500,0006068,000200,00070750,0001,5008082,000100,0009091,000100,00010010You note that admission to EuroLand is 150 euros per person. You also calculatehat transportation costs, including time costs, are approximately 1/2 euro per personber kilometer in each direction. Ignore the value of time in the parkCalculate the demand curve for visits to EuroLand, showing visits as a function ofhe entry price. How many fewer visitors would you expect there to be if the manage-nent raised the admission fee to 200 euros?Question

Asked Nov 11, 2019

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I'm waiting for the answer desperately

It's in environmental economic textbook, kolstad.

Step 1

suppose,

The admission to euro land = 150 euros per person.

Transportation cost including time cost= 1/2 (0.5) euro per person.

Increased admission fee by the management = 200 euros.

We can calculate the number of fewer visitors as follows.

Step 2

If the total distance of the 10 zones are 20,40, 60, …, 200 respectively, the total transportation

Cost per visitor can be calculated as follows.

Step 3

Using the same equation, we can calculate the transportat...

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