Let's assume you live 25 miles from the beach and it takes you 30 minutes to drive there from home. Your cost per mile of driving is $0.10 per mile and your opportunity cost of time is $10 per hour. There is no entrance fee to access the beach. The government invests in a beach nourishment project which doubles the width of the beach. Before the beach nourishment policy, your demand for trips was: D: Q = 20 - P After the beach nourishment policy, your demand for trips is: D: Q = 24 - P Using the travel cost method, what would you be willing to pay for the beach nourishment policy?

Let's assume you live 25 miles from the beach and it takes you 30 minutes to drive there from home. Your cost per mile of driving is $0.10 per mile and your opportunity cost of time is $10 per hour. There is no entrance fee to access the beach. The government invests in a beach nourishment project which doubles the width of the beach. Before the beach nourishment policy, your demand for trips was: D: Q = 20 - P After the beach nourishment policy, your demand for trips is: D: Q = 24 - P Using the travel cost method, what would you be willing to pay for the beach nourishment policy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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