1.The total demand curve for boating on a local town lake is as follows:

Price = 1000 2 Number Of T rips 10 Water PollutionIndex

(i) Suppose water pollution index impacts the demand for visits to the local lake. Assume the index is equal to 0.5. What is the inverse demand for for boating at the lake?

(ii) Describe what water pollution does to consumers' demand for trips.

(iii)Suppose a boating fee of $10/trip is charged. What is the total number of trips if this is the only cost (all other costs of the trip are zero)? Assume the index remains at 0.5.

(iv)What is the consumer surplus of visitors to the park, again assuming the index remains fixed at .5? CS=1/2bh