let the number of recreational visits to a beach per year be represented by Q,and the…

let the number of recreational visits to a beach per year be
represented by Q,and the travel cost in dollars to the beach be
represented by P. Suppose the estimated recreational inverse demand
function is P = 2,000-500Q+ 500q, where q represents a measure of
water quality in units.

Place Order

a.Suppose some visitor’s travel cost to the beach is $30 per trip.
If the current water quality is zero, how many trips per year to
the beach will this visitor make and what will be her consumer
surplus?

b.Suppose a project to clean up the beach improves water quality to
5 units. How many trips per year will be taken by all visitors to
the beach? What is the estimated benefit of the project to
visitors?