microbook_3e-page83

microbook_3e-page83 - paperwork indifference curve 1 If...

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paperwork beat walks indifference curve 1 indifference curve 2 If more paperwork leads to more criminal prosecutions and if more beat walks lead to lower crime rates, then the mayor of the city would prefer both more paperwork and more beat walks. So the mayor prefers all points on indifference curve 2 to any point on indifference curve 1. The mayor is indifferent however between points A, B, C and D. In order to remain indifferent between points A and B however, the mayor would require a very large increase in paperwork to offset the small decrease in beat walks. Conversely, in order to remain indifferent between points C and D, the mayor would require a very large increase in beat walks to offset the small decrease in paperwork. A B C D In other words, at point B the mayor demands a large increase in prosecutions to compensate for the increase in disorderly behavior that results from fewer beat walks. Conversely, if the initial ratio of paperwork to beat walks is relatively low (point C), then – in order to
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