Question
The local natural attraction in a touristic location is accessible to people in wheelchairs by a specially equipped bus that takes about 30 minutes one-way
The local natural attraction in a touristic location is accessible to people in wheelchairs by a specially equipped bus that takes about 30 minutes one-way to reach it from the natural area entrance. The attraction is accessible to people not in wheelchairs by regular bus and it takes 10 minutes to reach it from the entrance. During the most recent year data was available, 300 people in wheelchairs visited this touristic location. An economist has estimated that the demand schedule for the attraction 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 $12 per hour. Represent the problem graphically and answer the following question: what is the annual benefit of making the regular bus accessible to people in wheelchairs?
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