let the number of recreational visits to a beach per year be represented by Q,and the travel cost in dollars to the beach be represented by P. Suppose the estimated recreational inverse demand function is P = 2,000-500Q+ 500q, where q represents a measure of water quality in units.

a.Suppose some visitor’s travel cost to the beach is $30 per trip. If the current water quality is zero, how many trips per year to the beach will this visitor make and what will be her consumer surplus?

b.Suppose a project to clean up the beach improves water quality to 5 units. How many trips per year will be taken by all visitors to the beach? What is the estimated benefit of the project to visitors?

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a To find out how many trips the visitor will make and the consumer surplus when water quality is ze... View the full answer