6. Market for Insurance o D 1 Quantity S 1 Price Q 1 Q 2 P 1 P 2 D 2 Increase in crime Rise in demand for insurance Price and sales increase
7. o D 1 S 1 S 2 P Q 1 Q 2 P 1 P 2 Market for jewelry Quantity Rise in shop-lifting Sellers install expensive security equipment Supply shifts left Price of jewelry rises Quantity sold falls Works like a tax on goods Cost of security cameras
8.
9.
10. Demand price inelastic P Q d 0 Steep Curve: Demand Relatively Inelastic 1. Few close substitutes 2. The good is a necessity 3. Small part of buyer’s budget 4. Short time period 5. Addiction
11. Demand price elastic P Q d Flat Curve: Demand Relatively Elastic 0 1. Many close substitutes 2. The good is a luxury 3. Large part of a buyer’s budget 4. Long period of time
12.
13.
14.
15. P o P m P Q D 1 Q o D 2 An increase in demand with inelastic supply causes… large increase in price S m
16. P o P Q D 1 Q o D 2 P L An increase in demand with elastic supply - Smaller price increase S L Q L
17. Who will pay the tax, buyers or sellers? Quantity Price Q * P S P B Quantity Q * P * P S P * P B Inelastic Demand D D S S Elastic Demand Part of tax paid by buyers Part of tax paid by sellers Inelastic demand: higher share of taxes passed on to buyers via higher prices Elastic demand: higher share of taxes is paid by seller
18.
19. Intent important to an understanding of the dynamic process leading to death Confrontation and Choice Intent Outcome KILL (Premeditated Success - Homicide or 1st degree murder) Failure - Assault INJURE Success - Assault (Assault) Failure - No Injury Threaten Homicide 2nd or Manslaughter Could escalate to one of above Except for 1st degree Murder, the path is unclear - can be uncertain until the very end - may change in the process
20.
21.
22. France was the last Western European Country to abandon the death Penalty in 1977