Gobbet 11 - Travel Cost Method

# Gobbet 11 - Travel Cost Method - take 6 trips per year...

This preview shows page 1. Sign up to view the full content.

Gobbet #11: Travel Cost Method Assume that 1,000 people live in three concentric rings, areas A, B, and C, surrounding a national forest. All these people are identical in terms of their income and preferences. People in area C live furthest from the forest, and face travel costs of \$50 to use the resource for a day; they take only one trip per year. Folks in area B must pay \$25 to visit the forest; they
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: take 6 trips per year. Finally, area A people can wander in for free, and they do so 15 times per year. Using this information, derive a demand curve that plots the relation between travel costs and visits. In addition, determine the total consumer surplus for people living in areas A, B, and C. B C A...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online