1. (4 points) A person argues that if the prison sentences for all crimes were d
ID: 1135152 • Letter: 1
Question
1. (4 points) A person argues that if the prison sentences for all crimes were doubled, this would worsen the problem of overcrowded prisons, all other things being equal. Use the concept of demand to explain why this argument is incorrect. (12 points) It currently costs $500 to install a new shower in your house. A new law requires each new shower to come up with digital hot and cold-water controls instead of old-fashioned knobs that everyone uses today. Installing the digital controls costs the manufacturers an extra $200 per shower. Customers value the digital controls at $50 per shower. 2. a. Illustrate how the demand and supply curves for showers shift as a result of the new law. b. What happens to the price of a new shower? (Give either the exact new price or a range c. Who gains from this new law: buyers, sellers, both, or neither? Justify your answer. (4 (4 points) in which the new price must fall.) (4 points) points)Explanation / Answer
Answer 1 )
When the prison sentence is doubled,the price that a prisoner has to pay for committing a crime is higher and by the law of demand,the amount of criminal activities will fall.
The overcrowding of prisons depends on whether the demand for criminal activity is flat or steep.
If the demand is flat,then doubling the prison sentence would result in less criminal activities in order ot serve lesser prison times.
If the demand for criminal behaviour is steep,then doubling the prison time would result in only little or no change in criminal activities and thereby,increasing the prison time and worsen the overcrowding in prison.
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