You normally take the bus to school and it costs you 5 roundtrip.Let's say the bus line was elim

So we've discussed some important details regarding profit, revenue, and cost. We know that cost

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You normally take the bus to school and it costs you $5 roundtrip.\ Let's say the bus line was eliminated and now you have to drive to school at a roundtrip cost of $10.\ Your demand for trips (Q) to school as a function of the roundtrip cost of a trip (P) is:\ D: Q = 60 - 2P\ a) Draw a graph that shows the change in travel costs. Shade in the area that corresponds to lost welfare (WTP) from the bus route being eliminated. (3 pts)\ b) What would you be willing to pay for the reintroduction of the bus line? (3pts)

          You normally take the bus to school and it costs you $5 roundtrip.\
Let's say the bus line was eliminated and now you have to drive to school at a roundtrip cost of $10.\
Your demand for trips (Q) to school as a function of the roundtrip cost of a trip (P) is:\
D: Q = 60 - 2P\
a) Draw a graph that shows the change in travel costs. Shade in the area that corresponds to lost welfare (WTP) from the bus route being eliminated. (3 pts)\
b) What would you be willing to pay for the reintroduction of the bus line? (3pts)

You normally take the bus to school and it costs you 5 roundtrip.Let's say the bus line was eliminated and now you have to drive to school at a roundtrip cost of10.Your demand for trips (Q) to school as a function of the roundtrip cost of a trip (P) is:D: Q = 60 - 2Pa) Draw a graph that shows the change in travel costs. Shade in the area that corresponds to lost welfare (WTP) from the bus route being eliminated. (3 pts)b) What would you be willing to pay for the reintroduction of the bus line? (3pts)

Added by Ramon C.

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