30 - 0 ? = 30-04: 246 1. (16 points, as indicated) In response to acid rain damage to Lake Woebegone, a collaborative federal and state program has been proposed to improve the water quality of the lake. You have been hired to evaluate the benefits of the plan as part of a formal cost-benefit analysis. You estimate the following pre- and post-policy recreational demand functions for Lake Woebegone: y 30 - 0 2 V 0 = Pre-policy: P = 30 - 0.2Vo - 0. 2 Vo + 30 10 30 Post-policy: P =50 -0.2V1, -o.2V, +50 10 50 Vo where Vis number of visitors and P is price per visit. Assume the admissions fee is $20 per visit. 50- a. (12 points) Using this information, how would you estimate the benefits of the improved water quality? Illustrate in a graph, calculate the value, and explain your logic. If visitors coming more, then the price be Visit will be less. 30 - 01260 = 0 50 - 0.2V = 0 0. 210 = 30 0. 2 V1 = 5 Vo = 150 V1 = 2 30 20 Rost - Johcy admissia feelcorn Pre-policy 150 250 >V ve graph fill in the following talita: O Tol 10 b. (4 points) According to our textbook, what method are you using to estimate benefits? Net benefits, and years, and percentages rate