ECO320Y5 Lecture Notes - Lecture 15: Crown Attorney, Lassi
Document Summary
As cost goes up, people will cut back even though it helps the criminals. Minorities are the ones who want crime prevention no matter the cost. In reality, most will decrease crime prevention because of cost increases and as such crime goes up. In black market, if the policing increases, the illegal activity goes down because they do(cid:374)"t wa(cid:374)t to (cid:271)e (cid:272)aught. You can have different demand curves in black market. Elastic - people who are recreational crime users (i. e. occasional marijuana users) Inelastic - people who are highly reliant on crime (i. e. drug addicts) There is also cases where there is prohibition (i. e. drug is completely illegal) so supply is still there but it is very expensive due to low supply of such drug. Probability of detection of a harmful act is taken as fixed. Fine must = harm: cost incurred by public must also be included in fine. More sever punishment = less likely to partake in crime.
