Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the builders in the province are unethical and want to increase their profits by using substandard construction materials, but they can't do that unless they can bribe a housing inspector into approving a substandard building. Instructions: Enter your answers as a whole number. a. If bribes cost $1000 each, how much will a housing inspector make each year in bribes? [Assume that each inspector works 52 weeks a year and gets bribed for every house he or she inspects.) $-o b. There is a provincial construction supervisor who gets to hire all of the housing inspectors. He himself is corrupt and expects his housing inspectors to share their bribes with him. Suppose that 20 inspectors work for him and that each passes along half the bribes collected from builders. How much will the construction supervisor collect each year? $ c. Co the p SUPP 1.040900 rupt ofcials may have an incentive to reduce the provision of government services to help line their own pockets. Suppose that ovincial construction supervisor decides to cut the total number of housing inspectors from 20 to 10 in order to decrease the y of new housing permits. This decrease in the supply of permits raises the equilibrium bribe from $1,000 to $2,500. How much c. Corrupt ofcials may have an incentive to reduce the provision of government services to help line their own pockets. Suppose that the provincial construction supervisor decides to cut the total number of housing inspectors from 20 to 10 in order to decrease the supply of new housing permits. This decrease in the supply of permits raises the equilibrium bribe from $1,000 to $2.500. How much per year will the construction supervisor now receive it he is still getting half ofall the bribes collected by the 10 inspectors? as: Will he personally be happy with the reduction in government services? d. What would happen if reducing the number ofinspectors from 20 to 10 only increased the equilibrium bribe from $1,000 to $1,500? In his case, howI much per year would the construction supervisor collect from his 10 inspectors? $E In this case. will the construction supervisor be happy with the reduction in government services? E