Butchart Gardens is a very large garden in Victoria, British Columbia, renowned for its beautiful plants. It is so large that it could hold many times more visitors than currently visit it. The garden charges an admission fee of $30. At this price, 1,000 people visit the garden each day. If admission were free, 2,000 people would visit each day.
a. Are visits to Butchart Gardens excludable or nonexcludable? Are they rival in consumption or nonrival? What type of good is it?
b. In a diagram, illustrate the demand curve for visits to Butchart Gardens. Indicate the situation when Butchart Gardens charges an admission fee of $30. Also indicate the situation when Butchart Gardens charges no admission fee.
c. Illustrate the deadweight loss from charging a $30 admission fee. Explain why charging this admission fee is inefficient.