Answer to Question #196560 in Economics for Kajal Rajput

Question

Q.1. Data for visitors to Corbett Tiger Reserve from each zone is given below. The 

gate entry fee to the reserve is Rs. 150/ person. Transportation costs including time 

cost is Rs 10/ per kilometer in each direction.

Calculate the demand curve for visits to Corbett Tiger Reserve. How many visitors 

would you expect if Corbett Tiger Reserve management raised the entry fee to Rs. 

200?

Zone Distance from 

Park (km)

Zonal Population Number of visitors

1 10 5000 500

2 20 10,000 900

3 30 25,000 2,000

4 40 10,000 700

5 50 100,000 6,000

6 60 500,000 25,000

7 70 200,000 8,000

Answer 1

The demand curve for visits to Corbett Tiger Reserve will be downward-sloping, because as the transportation cost increases, then the total price is higher and quantity demanded is lower.

If Corbett Tiger Reserve management raised the entry fee to Rs. 200, then we would expect the number of visitors to decrease.