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Susan and Jane are believed to have the same money income, have the same tastes, and face the same set of prices of all goods
Susan and Jane are believed to have the same money income, have the same tastes, and face the same set of prices of all goods and services except that of access to the City Botanic Garden. Susan lives further away from the garden than Jane and hence incurs a higher travel cost per visit. There is a $5 admission charge for each visit to the Garden. The following data summarize their annual visits to the Garden: Individual Travel Cost per Visit No. of Visit per annum Susan 25 10 Jane 5 50 Assume the inverse demand curve is linear, that is Cost = a + b visit ; and there is no other cost in operating and maintaining the Garden. You are required to calculate: The consumer surplus of individual
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