Reference no: EM131416001

A survey of all recreational fishermen using Lake Chutzik in the Adirondacks (upstate New York) during the summer of 1990 produced the following information regarding their numbers and their residences (zones). Zone 1 is the closest to the park and Zone 5 is the farthest. Each zone has roughly the same population and roughly the same socio-economic characteristics. There is no admission fee charged at the park.

Zone  Travel Cost to Site ($)  Number of Visitors

1                20                                 500

2              40                                 400

3             60                                  300

4            80                                   100

5          100                                      0

1. Determine the implicit (monthly) demand curve for visits to the lake and plot it in a graph. [Plot the "hypothetical admission fee" on the vertical axis and the number of visitors on the horizontal axis.]
2. Given the demand curve you have derived, what is the aggregate consumer surplus enjoyed by users of the lake?
3. Would the aggregate consumer surplus enjoyed by users of the lake capture all of the benefits from having the lake?