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Question: 215 the price of heroin and property crime the price...

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2.15 The Price of Heroin and Property Crime. The price elasticity of demand for heroin is 0.27. Suppose that half of heroin users support their habits with property crime, so the loss from property crimes committed by heroin users equals half the total spend- ing (total revenue) on the drug. Suppose the govern- ment reduces the supply of heroin, increasing the equilibrium price by 20 percent. Fill in the blanks in the following table. Quantity of Total Spending Heroin(Total Revenue) Property Crime Price $10 12 1,000 $10,000 $5,000
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