31.6k views
2 votes
Travel Cost Method A survey of all recreational fishermen using Lake Chutzik in the Adirondacks (upstate New York) during the summer of 1990 produced the following information regarding their numbers and their residences (origins):

Origin: #1, #2, #3 Number of Users: 100, 50, 25 and Travel Cost: $50, $100, $125
Calculate the consumer surplus for all users from each origin, and the total consumer surplus for all users

User Armaan
by
7.7k points

1 Answer

0 votes

Final answer:

The question addresses the Travel Cost Method, which requires specific data on travel costs and the demand function to calculate consumer surplus. However, the data provided pertains to the equilibrium price and quantity in the market for salmon, which is unrelated to consumer surplus calculations for recreational fishing. For the homogeneity test, a Chi-square test is used to compare fish distribution between two lakes.

Step-by-step explanation:

The question concerns the Travel Cost Method and consumer surplus calculation for recreational fishermen at Lake Chutzik. There appears to be a misunderstanding as the data provided relates to the market for salmon, including the original equilibrium quantity and equilibrium price. To address the student's needs, we would require data specifying travel costs and the number of visits by fishermen or the demand function for using the lake. Typically, for the Travel Cost Method calculation, the area under the demand curve above the price paid represents the consumer surplus, which is an indicator of the economic benefit users get above what they pay. However, without specific data on travel costs or demand for lake use, we cannot directly calculate the consumer surplus for Lake Chutzik's fishing activity.

Additionally, the question involves conducting a homogeneity test involving fish distribution in two different lakes. To perform a test for homogeneity at a 5 percent level of significance, one would typically employ the Chi-square test, comparing the observed frequencies of fish types in Green Valley Lake and Echo Lake with expected frequencies if the distributions were the same.

User Pranathi
by
7.4k points