If the elasticity of crime with respect to the number of


If the elasticity of crime with respect to the number of police is estimated to be -0.5 and the number of police fell by 5% and annual expenditures on police are equal to $60 billion and the cost of crime to victims is estimated to $400 billion then decreasing the police by 5% was

1. unwise; the additional crime is estimated to cost society $20 billion while the cost savings from decreasing the size of the police force was only $1.5 billion

2. unwise; the additional crime is estimated to cost society $18 billion while the cost savings from decreasing the size of the police force was only $3 billion

3. unwise; the additional crime is estimated to cost society $10 billion while the cost savings from decreasing the size of the police force was only $3 billion

4. wise; the additional crime is estimated to cost society $3 billion while the cost savings from decreasing the size of the police force was $18 billion

5. none of the above

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Microeconomics: If the elasticity of crime with respect to the number of
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