Cost-Benefit Analysis: Park Visits

This lecture covers a cost-benefit analysis example where the instructor compares the cost and benefit of going to the park for different numbers of visits, illustrating how to calculate the total cost, total benefit, and surplus to determine the optimal number of visits. The lecture also delves into the concept of marginal willingness to pay, decreasing incremental total willingness to pay, and the impact of price changes on consumer behavior. Additionally, the lecture explores the Law of Demand, market equilibrium, excess demand, and the effects of price floors and ceilings on market outcomes. The instructor concludes with an exercise on abatement measures and how changes in oil prices affect decision-making.