1. Both mountain bikers and hikers enjoy Horsetooth Mountain Park. Assume there

Question

1. Both mountain bikers and hikers enjoy Horsetooth Mountain Park. Assume there are more substitute hiking spots than there are biking trails. Further assume that there are demand side congestion effects of both bikers and hikers visiting the Park. The marginal cost of both biker and hiker visits is $5. A) Show the total demand for visits to the park and the separate demand curves for bikers and hikers. B) Show the economically optimal amount of visitation for bikers and hikers. C) Show and discuss the impact of congestion on the optimal rate of visitation and who will be affected by this change in optimal visitation.

2. Illustrate and discuss how demand and supply elasticities influence the effectiveness of wildlife protection alternatives (recall the discussion of Rhinos and Elephants from class). Be sure to mention all three classes of alternatives available.

3. What are the most important economic dimensions of the Convention on Biological Diversity’s Strategic Plan? Why? Describe how the removal of perverse subsidies on fuel, fish, forests and agriculture can be argued to result in a ‘win-win’ for taxpayers and biodiversity.

Explanation / Answer

Bikers and hikers both enjoy the mountain park, For bikers there are other options other than this park but for hikers there is no other option.

So the national park is more likely to get more hikers than bikers, Hikers have no other option but to go to this park. So we can clearly see more hikers irrespective of number of bikers, So bikers will choose elsewhere due to congesstion

2) There are no alternatives mentioned here, Demand for wildlife tourism will bring stress to animals and there is also greater risk of animals getting too familiar with humans and at times atacking them, This has happened in many places and there are lot of evidances about this

3) Bio-diversity is nothing but more diverse kind of creatures which are natives of the land will populate again and we live in a great diverse place, After de-forestation and hunting many great species are extinct today, Further tourism into eco-zones is also causing more problems to the species bring new diseases and waste.

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