2. (32')This study uses the zonal travel cost method to estimate the recreational use value of a state park in Pennsylvania. Follow the steps to calculate the demand curve. a. Suppose we divide the visitors into 3 zones. Finish table 1 (4 points). b. Assume that travel speed is 2/3 miles per minute. The total cost of travel includes two parts: costs of driving (gas, toll, etc.), which is $.30 /mile, and cost of time (opportunity cost), which is $9 /hour. Calculate the total cost for each zone ( 4 voints). c. Ine theoretical model is as follows and the result table from a paper shows four different functional forms. Visits are in 1/10,000. Visits=0+1travelcost+2Xi What variables could be Xi (other characteristics that influences the number of visits from each zone)? List three. (4 points) d. Let's simplify the analysis by assuming there is only one zone and the linear model works with 2=0. The result table is as follows: Write out the visit generation model. ( 2 points) e. Suppose the government wants to impose a $10 fee on this state park. How many visitors will visit now? (4 boints) f. How much revenue will the government get? ( 2 points) g. Draw the demand in a graph, you can be accurate with two points then extrapolate the rest. (4 points) h. Approximately much would be the decrease in consumer surplus from this fee? (4 points) i. Should the government impose the fee? (hhat are other impactsyof the fee that we have not considered here yet? (4 points) 2. (32')This study uses the zonal travel cost method to estimate the recreational use value of a state park in Pennsylvania. Follow the steps to calculate the demand curve. a. Suppose we divide the visitors into 3 zones. Finish table 1 (4 points). b. Assume that travel speed is 2/3 miles per minute. The total cost of travel includes two parts: costs of driving (gas, toll, etc.), which is $.30 /mile, and cost of time (opportunity cost), which is $9 /hour. Calculate the total cost for each zone ( 4 voints). c. Ine theoretical model is as follows and the result table from a paper shows four different functional forms. Visits are in 1/10,000. Visits=0+1travelcost+2Xi What variables could be Xi (other characteristics that influences the number of visits from each zone)? List three. (4 points) d. Let's simplify the analysis by assuming there is only one zone and the linear model works with 2=0. The result table is as follows: Write out the visit generation model. ( 2 points) e. Suppose the government wants to impose a $10 fee on this state park. How many visitors will visit now? (4 boints) f. How much revenue will the government get? ( 2 points) g. Draw the demand in a graph, you can be accurate with two points then extrapolate the rest. (4 points) h. Approximately much would be the decrease in consumer surplus from this fee? (4 points) i. Should the government impose the fee? (hhat are other impactsyof the fee that we have not considered here yet? (4 points)