Econ 327 Economics of CrimeAssignment 4Due 11/8/21, 12:45pm (submit via Canvas prior to class)Reminder: You may work together in groups to discuss the answers, but everyone must write up theirown responses separately. You may type or hand write responses, as long as you can get the result into a pdfor Word document you can upload to Canvas in one file. Note the assignment spans 3 pages. Show all yourwork.1True/False/UncertainInstructions:Decide whether each statement is true, false, or uncertain, andexplain why. Each question isworth 5 points - 1 for the correct true/false/uncertain answer and 4 points for the explanation. Explanationsmay take the form of words, graphs, math, or some combination of the three.1. Crystal methamphetamine is a drug that generates a fair amount of psychopharmocological violence.Imagine the current crystal meth market in equilibrium, including all the relevant externalities. Nowsuppose in an effort to stem rising violence rates, policymakers increase prison sentences for methproducers and users. The social costs associated with the meth market will decrease.2. In 2010, the producer of OxyContin – a commonly abused opioid – changed the formula to make itharder to abuse. Economic theory says that this change should increase heroin use (the quantity ofheroin consumed in equilibrium). Note that heroin is also an opioid.
