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The New York Botanical Garden is a very large garden in the Bronx renowned for its beautiful flora. It is so large that it could hold many times more visitors than currently visit it. The garden charges an admission fee of $10. At this price, 1,000 visitors visit the garden each day. If admission were free, 2,000 visitors would visit the garden each day.
a) Are visits to the NY Botanical Garden excludable or nonexcludable? Are they rival in consumption or nonrival? Is it a public good?
b) In a diagram, illustrate the demand curve for visits to the NY Botanical Garden. Indicate the situation were admission costs $10. Also indicate the situation where there is no admissions fee.
c) Illustrate the deadweight loss from charging a $10 admission fee. Explain why charging $10 is inefficient, and calculate the size of the deadweight loss.
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