1. The New York State Office of Parks, Recreation & Historic Preservation is considering alternative uses for Letchworth Park, one of the 178 State Parks in New York. There is a proposal to allow for the development of a golf course and resort on a portion of the 14,350 acres. The development would significantly reduce access and scenic views of the waterfalls, along the current 66 miles of hiking trails. Survey data have been gathered from 1,000 people who visited Letchworth Park in the past 3 months. Using regression analysis, we have controlled for differences among the visitors in income, employment status, age, and other important factors that might have affected the number of trips taken to Letchworth. Given this, we have estimated the following demand curve for the average visitor to the park: Visits;=120.10 Travel Cost; a. Graph and label the demand curve based on the estimated equation above. (You need to switch the axis, so Travel Cost is on the vertical axis and Visits is on the horizontal axis.) Of the 1,000 visitors, 700 reside more than 100 miles away, and they make an average of 5 trips per year to Letchworth Park. b. What are the net benefits (Consumer surplus) for the average visitor that resides more than 100 miles away from the park per year and makes 5 visits? C. What are the total net benefits (Consumer surplus) for all visitors that reside more than 100 miles away? Of the 1,000 visitors, 300 reside within 30 miles, and they make an average of 10 trips per year to Letchworth Park. d. What are the net benefits (Consumer surplus) for the average visitor that resides within 30 miles of the park per year and makes 10 visits? e. What are the net total benefits (Consumer surplus) for all visitors that live within 30 miles? f. What are the net total benefits (Consumer surplus) for all 1,000 visitors? 1. The New York State Office of Parks, Recreation & Historic Preservation is considering alternative uses for Letchworth Park, one of the 178 State Parks in New York. There is a proposal to allow for the development of a golf course and resort on a portion of the 14,350 acres. The development would significantly reduce access and scenic views of the waterfalls, along the current 66 miles of hiking trails. Survey data have been gathered from 1,000 people who visited Letchworth Park in the past 3 months. Using regression analysis, we have controlled for differences among the visitors in income, employment status, age, and other important factors that might have affected the number of trips taken to Letchworth. Given this, we have estimated the following demand curve for the average visitor to the park: Visits;=120.10 Travel Cost; a. Graph and label the demand curve based on the estimated equation above. (You need to switch the axis, so Travel Cost is on the vertical axis and Visits is on the horizontal axis.) Of the 1,000 visitors, 700 reside more than 100 miles away, and they make an average of 5 trips per year to Letchworth Park. b. What are the net benefits (Consumer surplus) for the average visitor that resides more than 100 miles away from the park per year and makes 5 visits? C. What are the total net benefits (Consumer surplus) for all visitors that reside more than 100 miles away? Of the 1,000 visitors, 300 reside within 30 miles, and they make an average of 10 trips per year to Letchworth Park. d. What are the net benefits (Consumer surplus) for the average visitor that resides within 30 miles of the park per year and makes 10 visits? e. What are the net total benefits (Consumer surplus) for all visitors that live within 30 miles? f. What are the net total benefits (Consumer surplus) for all 1,000 visitors
