4.8 Sensitivity to Price Change 



The resource allocation was stable over a large range of price variability. 

 This may be due to the fact that different recreation activities are not close 

 substitutes. The item most sensitive to price change was low-priced shore cottages. 

 Shore cottages and non-shore cottages, both with and without boats, were close 

 substitutes. 



4.9 Summary 



Most lakes were used primarily for recreation. ShoreUne was dominant in lake 

 surface and recreation area in terms of valuation. Implied prices were as high as 

 $15,000 per acre of recreation land, with shore frontage implied. The principal 

 determinant of lake-surface value was boating; of shore frontage, swimming and 

 day-use facilities; and of recreation area without shore frontage, non-shore va- 

 cation cottage use. Resource allocation was quite stable and varied little with 

 small changes in prices. Economic pressures encourage full usage of lake and 

 recreation land resources, with beach activity and vacation cottages on small 

 lots dominating. For most lakes, adequate provision for holding land for con- 

 servation purposes are not now effective. 



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