Gobbet 11 - Travel Cost Method

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

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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
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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...
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