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Activity 3.2

Subject: Consumer Behavior

Paper Model: APA

Paper Type: Assignment

Total Words: 463

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In case of the Oregon coast oil spill, there are number of preference techniques which can be used to measure the impact on the beach which will reduce the number of beach days. The revealed preference technique will be used which will measure the decision making by the people in reaction to the expected changes in the quality of the environment around the Oregon coast line.  For that purpose, travel cost model can be used which can value the environmental resources associated with the recreational activities of the public. The demand value of the beach can be determined by evaluating the observations on travel cost and the quantity of visits by the tourists. Once the demand curve is reliably estimated, valuation of Oregon beach site by the individuals can be estimated by using the consumer surplus for individuals selected. Since, Scot has three hours, so he should search a report on number of individuals visiting the place every day. Therefore, demand curve is formulated by using the variables found by research on number of visits and by calculating the average surplus and multiplying it by estimated number of tourists using the beach everyday/month.


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