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PRICE, QUAN c. Corrupt officials may have .scentive to reduce the provi sion of government services . help line their own pockets Suppose that the

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PRICE, QUAN c. Corrupt officials may have .scentive to reduce the provi sion of government services . 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 $1000 to $2500. How much per year will the construction supervisor now receive if he is still getting half of all the bribes collected by the 10 inspec- tors? How much more is the construction supervisor getting now than when he had 20 inspectors working in

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