The estimated incremental benefits (in thousands of dollars) associated with this new policy are
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions:
Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2,
where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor.
a. 2,100 b. 44,100 c. 90,000 d. 45,900
d. 45,900
You might also like to view...
Puts and calls are the choices available to participants in the
A) options market. B) futures market. C) swap market. D) stock market.
When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve. B) creates a new checkable deposit payable to the Federal Reserve. C) normally will do so because it has excess reserves. D) loses reserves equal to the amount of the loan.