Jason likes to go fishing for Dungeness crabs in Newport. It takes him one (1) hour to drive from his home in Corvallis to his favorite spot on Yaquina Bay, and his one-way driving costs are $20. There is no parking fee (i.e. entrance fee). Assume his opportunity cost of time is $15/hour. His inverse demand for crab fishing trips is: TC= 80 - Q where TC is the roundtrip travel cost of the trip.

A harmful algal bloom has now spread to Yaquina Bay. Foul smells are present and many of the crabs in the bay have moved elsewhere. Jason does not enjoy his fishing trips nearly as much now, so his inverse demand for fishing trips after the harmful algal bloom is: TC = 72 - Q.

25. Construct a graph to depict the situation described above and use this graph to help answer questions 26 - 29. Make sure to label all intercepts and curves.

26. What is Jason's roundtrip travel cost to his fishing spot on Yaquina Bay?

27. How many fishing trips does he take before the harmful algal bloom? Label this point on the graph in question 25.

28. How many trips does he take after? Label this point on the graph in question 25.

29. What is Jason's willingness to pay for clean bay water (i.e. his WTP to avoid the harmful algal bloom)? Calculate this answer numerically -AND- shade the area on the graph in question 25 that represents your numerical answer.