A. Given the following data on the travel cost to three recreation sites from three towns in Arizona, who visits site A, who visits site B, and who visits site C?

B. If a price break amounting to $12 per visit to site A was offered to residents of Alpha – but not to visitors from any other town – how would that affect residents of Alpha? How would it affect where they go? How would it affect their welfare?

C. If you are analyzing the demand functions for several sites and you believe these sites differ significantly in their quality and attractiveness, how does this affect your research plan?

D. What information do you need in order to calculate the economic benefit of an improvement in the quality of a recreation site?

Transcribed Image Text:

TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10 TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10 TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10 TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10 TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10 TOWN Alpha Beta Gamma SITE A COST TO VISIT SITE SITE B $18 $18 $20 $5 $43 $17 SITE C $43 $5 $10

Answer rating: 100% (QA)

A Towns A B and C all visit site A Towns A and B visit site B Town C visits site C Site A is the cheapest to visit at 5 so all three towns visit site A Site B is more expensive at 18 so only towns A a... View the full answer