Suppose that the demand curve for visits to Grand Teton National Park is given by p= 4000 - x, where p measures the total price per visit and x measures the number of visits per month (in hundreds). Suppose that we have access to a cross-section of last year's visits to the site from which we're able to infer that the average household cost per visit during 2023 was $1,800. 1. What is the implicit valuation of the site to society? 2. Suppose that the average household cost per visit increases in 2024 to $2,500 due to more expensive airfare. What is the implicit valuation of the site to society? Does it increase or decrease?

Suppose that the demand curve for visits to Grand Teton National Park is given by p= 4000 - x, where p measures the total price per visit and x measures the number of visits per month (in hundreds). Suppose that we have access to a cross-section of last year's visits to the site from which we're able to infer that the average household cost per visit during 2023 was $1,800. 1. What is the implicit valuation of the site to society? 2. Suppose that the average household cost per visit increases in 2024 to $2,500 due to more expensive airfare. What is the implicit valuation of the site to society? Does it increase or decrease?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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