Sherman's Analysis of the Effects on the Surrounding Neighborhood of Court-Authorized

question 3

Multiple Choice

Sherman's analysis of the effects on the surrounding neighborhood of court-authorized drug house raids indicates that

• A) they were highly effective in improving the neighborhood.
• B) no measurable effect occurred.
• C) they were effective only if arrests were made.
• D) improvement occurred but decayed in two weeks.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from producing and consuming a good or service.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Producer Surplus

The gap between the price producers are ready to take for offering a product or service and the actual payment they receive.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive.