Individuals A and B have the same money income, have the same tastes and face the same
Question:
Individuals A and B have the same money income, have the same tastes and face the same set of prices of all goods and services except that of access to a National Park.
Individual A lives further away from the park than Individual B and hence incurs a higher travel cost per visit. There is no admission charge to enter the park. The following data summarise their annual use of the park:
Individual Travel cost per visit Number of visits p.a.
A $20 5 B $10 10 i Approximately how much consumer surplus does Individual A receive per annum from her use of the park?
ii Approximately how much consumer surplus does Individual B receive per annum from his use of the park?
Step by Step Answer:
Cost Benefit Analysis
ISBN: 9781032320755
3rd Edition
Authors: Harry F. Campbell, Richard P.C. Brown