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I am calculating the elasticity of crime. Say I find that one additional officer, a 1.3% increase in the police force, lowers non-violent crime in Milwaukee by 3.2%. What is the final value of the elasticity? Should I say that the relationship of crime to officers is elastic or inelastic? Defend your choice.

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Related questions

Please respond to my post and let me know what you think.

Q: Assume that you recently made a purchase on Amazon.com. The next time you go to purchase this item, letҀ™s say you find out that the price has increased by X dollars. How would you respond to this price increase? Would you say this item is Relatively Elastic, Relatively Inelastic, or Unitary Elastic? Explain using the Determinants of thePrice Elasticity of Demand (see page 83). Think about how the increasing popularity of shopping online impacts your response.

A: I recently purchased supplies for my job, and I only purchased these items because of the prices that were offered and speed of delivery. The items I purchased are elastic and can be substituted, were complementary toward the first good purchased. I would almost guarantee that 90% of Amazon items are elastic. Only because people purchase from Amazon due to price shopping, whether it is savings on shipping, savings on speed of delivery, saving on gas to purchase online, savings on time spent shopping and more. We would want to think people online are comparing prices to other online retailers and if the same item is sold at a different online retailer they would make a wise choice to purchase that item there. I believe online shopping has became a shopping choice due to easier shopping, and comparing prices to get the best deal. So, if I shop online and its so easy to compare prices, and I noticed the price increased I would look into a substitution. Most items are in multiple brands, colors, etc. that would help customers have more choices. More choice the more elastic. Items such as gas, water or medicine are more inelastic. These necessities are important to the consumer that if the price went up, we will still consume it. I do agree that income does make a difference, because someone who wants to spend high dollar on an item they can get cheaper or substitute makes that item less elastic. So there are multiple determinants that can effect the elasticity.

Elasticity: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: 'There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50 than in the previous December, a 4.3% decline.'

a. Use these data to infer the original subway token price and calculate the price elasticity of demand for subway rides. Interpret your calculated result, i.e., specify whether the value you calculate indicates demand is elastic, inelastic, etc...

b. According to your elasticity estimate, what happens to the transit authority's revenue when the fare rises?

c. How might factors that influence the elasticity of demand make your estimate of the elasticity be unreliable? Give the factor or factors you use and provide concise support for your choice(s) in one sentence.

** PLEASE show all work/explain I really want to be able to understand how to do this problem and not be given just a plain answer for each. Thank you!!

Question 1

  1. If economic profits are zero

    accounting profits is less than the cost of capital.

    accounting profit is just covering the cost of capital.

    the cost of capital is negative.

    the entrepreneur should go to his/her next best alternative.

3 points

Question 2

  1. Markets provide

    information.

    prices.

    incentives.

    all of these choices.

3 points

Question 3

  1. The entrepreneur is always searching for

    positive profit.

    normal profit.

    accounting profit.

    economic profit.

3 points

Question 4

  1. Social regulations can create

    a more competitive market place.

    network externalities.

    a lower HHI.

    barriers to entry.

3 points

Question 5

  1. According to economic theory, profits are maximized where

    total revenue equals total cost.

    marginal revenue equals marginal cost.

    price and average cost are equal.

    where marginal product and average cost are equal.

3 points

Question 6

  1. Brand names help

    create commodities.

    maintain market power.

    create competition.

    keep economic profits at zero.

3 points

Question 7

  1. Entry of new firms causes

    accounting profits to go to zero.

    market share to grown.

    economic profits to go to zero.

    total revenue to be maximized.

3 points

Question 8

  1. Fixed costs

    do not vary with output

    vary with output

    do not vary with price

    vary with price

3 points

Question 9

  1. Variable costs

    do not vary with price.

    do not vary with output.

    vary with price.

    vary with output.

3 points

Question 10

  1. Value maximization means

    that managers make decision so as to increase the long-run market value of the financial claims on the firm.

    that a firm should make products that have the highest price.

    that managers make decision so as to increase the short-run market value of the financial claims on the firm.

    all of these choices.

3 points

Question 11

  1. A manager can determine if her product is viewed as a normal good or an inferior good by considering

    price elasticity.

    cross elasticity.

    income elasticity.

    advertising elasticity.

3 points

Question 12

  1. If demand is perfectly elastic,

    the smallest increase in price will cause quantity demanded to fall to zero.

    the smallest increase in price will cause demand to fall to zero.

    the smallest increase in price will cause quantity demanded to fall.

    the smallest increase in price will cause demand to fall.

3 points

Question 13

  1. If demand is perfectly elastic, then

    demand and price are inversely related.

    quantity demanded and price are inversely related.

    the demand curve is a vertical line.

    the demand curve is a horizontal line.

3 points

Question 14

  1. If price elasticity is 3.25 then

    for every one percent change in price, there will be a 3.25 percent change in quantity demanded.

    for every one percent change in price, there will be a 3.25 percent change in demand.

    for every one percent change in price, there will be a 32.5 percent change in quantity demanded.

    for every one percent change in price, there will be a .0325 percent change in quantity demanded.

3 points

Question 15

  1. If price elasticity is 3.25, then demand is

    inelastic.

    elastic.

    unitary.

    negative.

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