The New York City Waterfalls, a temporary public artwork conceived by artist Olafur Eliasson, was on display in four locations on the East River and New York Harbor from June 26 to October 13, 2008.Waterfallswas viewed by nearly 1.4 million people from one of seven official vantage points or the major ferry and tour boats during this time. Hundreds of thousands of others had an opportunity to view theWaterfallsfrom other sites or as part of their daily commute, morning run, or other routine activity.

On October 21, 2008, Mayor Bloomberg announced, "This summer's Waterfalls exhibit generated $68.6 million in economic activity in New York City, $13.4 million more than originally anticipated." Does the Mayor's statement seem correct? What assumptions underly the Mayor's statement?

Who is likely to benefit from this increased economic activity? Is there anyone who may suffer as a result? Please be as specific as possible and explain your answer.

Assuming the Mayor's statement is accurate, how might the Waterfalls exhibit affect local employment levels and wages in the short-run, if at all? Use a supply-demand diagram to help illustrate your answer. Would you expect any long-run effects (positive or negative)? Explain the findings from your graph.

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Answer New York City Waterfalls and Economic Impact Mayors Statement The Mayors statement that the Waterfalls generated 686 million in economic activity seems possible but with some uncertainties Attr... View the full answer