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2) Consider the example of marginal deterrence and crime substitution between burglary, robbery, and lawful employment. Suppose the initial net return is $70 in each

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2) Consider the example of marginal deterrence and crime substitution between burglary, robbery, and lawful employment. Suppose the initial net return is $70 in each activity and there are 20 people in each activity. Suppose that instead of increasing the burglary penalty, we decrease the net return to lawful employment by half, represented by a downward shift of the net-return curve by $35. a. What will be the substitution response of this change? Explain. b. After the switching from part (a), what happens to the net return to lawful employment, burglary, and robbery? c. In the new equilibrium, is the net return is greater or less than $70? Is the number of lawful workers, burglars and robbers greater or less than 20 each? d. Draw a trio of curves like the figure 13-9 from the lecture slides to illustrate your answers to parts a-c above. e. In the new equilibrium, the sum of burglars, robbers, and lawful workers is and the net return to crime (burglary and robbery) is [greater than, less than, or equal to] the net return of lawful employment

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