Problem
Willingness to Pay for New Airport Gates. Your city is considering an airport-expansion project that would increase the number of airport gates and allow additional airlines to serve your city. According to a recent report, the additional competition made possible by the new gates would decrease the average airline fare from $220 to $200 and increase the number of passengers from 400 to 600 per day. The city would borrow money to finance the project, and the daily payment required to pay off the loan over 20 years would be $8,100. How does the benefit to consumers compare to the cost of the project?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.