Draw the demand curve, Macroeconomics

Assignment Help:

The total demand (marginal benefit) curve for visiting the Great Barrier Reef is as follows: Price = 5000+100*Fish Biomass (tons per square mile) -10*Number of Trips.

a. Does the quantity of fish biomass increase or decrease the willingness to pay for an additional trip?

b. Suppose the density of fish is 2 tons per square mile. Draw the demand curve below, being sure to label the axes and the slope and intercept appropriately.

c. Suppose the marine preserve charges an entrance fee of $100. What is the total net benefit to consumers who visit the park (the "consumer surplus")? In answering this question, continue to assume that fish biomass remains at the level in part b. Also, assume that the only cost to visitors is the entry fee (clearly not the case generally).

d. Now assume the park implements a program that drastically limits fishing activities within the preserve and engages in a coral restoration program. The result is a 50% increase in fish biomass from the levels described in part b. Assuming the entrance fee from c) remains the same, what is the new consumer surplus? What is the economic benefit (net of costs) to park visitors from the cleanup program? What is the impact on revenues from park visitation?


Related Discussions:- Draw the demand curve

Perfect competition and monoploy, 1. # of sellers, # of buyers 2. entry and...

1. # of sellers, # of buyers 2. entry and exit conditions 3. product characteristics 4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs ar

Government and price-determination, Government and Price-Determination can ...

Government and Price-Determination can be understood as follows: The government might intervene in the market and mandate the maximum price (price ceiling) or the minimum price

Fiscal policy in the School of rational expectations, I want a Fiscal polic...

I want a Fiscal policy in the School of rational expectations.

How can we define the real wage as nominal wage, How can we define the real...

How can we define the real wage as nominal wage We define real wage as nominal wage divided by a price index (typically CPI). In the illustration above, your real wage was 20 i

Perfect competion, discuss the contention that the existance of a labour ma...

discuss the contention that the existance of a labour market in a perfect competion is a fallacy

Calculate the numbers, Use the information below to calculate the numbers i...

Use the information below to calculate the numbers instead of "?" marks in the Table. Show and explain all your calculations?

Equilibrium price and quantity, Use the following general linear demand rel...

Use the following general linear demand relation: Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the suppl

#title.macro economics., how to relate macro economics theories with curren...

how to relate macro economics theories with current indian economy

What do you meant by investment, Q. What do you meant by Investment? Wh...

Q. What do you meant by Investment? When we use the word investment, we characteristically mean 'gross investment'. Fundamentally, gross investment comprises all finished goods

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd