The figure below presents data for two families (1 and 2), including their travel cost per trip (p1,p2) and the number of trips they take (q1,q2). Assume that the families are identical except for their travel costs. The figure below presents a marginal willingness to pay (demand) curve. Consider family 2 experiencing this amenity--what area characterizes the:  i. Total benefits ii. total costs iii. Net benefits

ENGR.ECONOMIC ANALYSIS
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The figure below presents data for two families (1 and 2), including their travel cost per trip (p1,p2) and the number of trips they take (q1,q2). Assume that the families are identical except for their travel costs. The figure below presents a marginal willingness to pay (demand) curve. Consider family 2 experiencing this amenity--what area characterizes the: 

i. Total benefits

ii. total costs

iii. Net benefits

a
p1
-MWTP
b
d
P2
f
91
q2
visits
%24
Transcribed Image Text:a p1 -MWTP b d P2 f 91 q2 visits %24
Expert Solution
Step 1

For family 2,

Travel cost per trip = p2

Number of trips taken = q2

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