Question
An overlook in the state's Scenic Park offers a spectacular view of Angel's Lake and the surrounding countryside. The overlook is accessible to people in
An overlook in the state's Scenic Park offers a spectacular view of Angel's Lake and the surrounding countryside. The overlook is accessible to people in wheelchairs by a special park bus that takes about 60 minutes to reach the overlook. The overlook is accessible to people not in wheelchairs by a tram that takes 15 minutes to reach the overlook. During the most recent park season, 600 people in wheelchairs visited the park. A local economist has estimated that the demand schedule for overlook visits by people in wheelchairs is linear and has a price elasticity of demand equal to -0.8. Assume that people in wheelchairs value their recreational time at $10 per hour. What is the annual benefit of making the tram accessible to people in wheelchairs?
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