The city council of Verona wants to decrease the number of crimes and is considering increasing the budget for the police force and the municipal justice system. The direct harm from the average crime is $10,000. The average cost of trials and punishment for an apprehended criminal is $100,000. These costs are expected to stay the same for the coming year. There are currently 1500 crimes reported per year, and 20% of offenders are caught.

a) (3 marks) What is the current total social cost of crime in Verona?

b) (7 marks) Explain the effects on the social cost of crime of increasing the percentage of offenders caught to 22%.[Note: You can answer this in words or math or a combination of the two methods.}