3. A number of visitors to a recreational park and the travel cost are illustrat

Question

3. A number of visitors to a recreational park and the travel cost are illustrated in the table below: Travel cost Population Init visitors visit rate,S fee Initia Cost with New iNew rate $2 $3 $4 $5 50,000 25,000 12,500 6,250 1,000 375 125 0 4.000 Total a. Calculate the number of visitors if a 1$ admission fee were charged b. Calculate consumer surplus and recreational value at the initial admission fee (Hint c. Calculate consumer surplus and recreational valuc at the increased admission fee (Hint: recreation value = consumer surplus). recreation value consumer surplus). Demand curve function is illustrated on figure and is expressed by the equation: 4,000 Q 4. There are MAC and MD curves FIGURE 5.6 The Efficient Level of Emissions MD Emissions (tons/year) a. Identify socially efficient level of pollution b. Describe the following areas: i. Area a i. Areab iii. Area (a+b) Due to highly-costly policy, the level of emissions has changed from e* to e'. Use area- letters to describe and identify changes occurred in c. i. Total damage cost ii. Total abatement cost iii. Total social cost

Explanation / Answer

Can answer only four parts according to chegg policy. Please send other parts as separate question. I will answer 4 parts of question 4

1.Socially efficient level of pollution is e*

2 a is total demage cost at socially efficient level of pollution

3 area B is marginal control cost of decreasing emission to e* level

4 a+B is total social cost

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