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The Washington, D.C., police bought more than 6,000 guns, no questions asked, in gun buyback programs in 1999 and 2000. Millions of dollars have been spent in similar programs in many cities including NYC. The theory of gun buybacks is that: buybacks reduce guns in circulation and fewer guns in circulation reduce crime. Do gun buyback programs make good policies?
(Hints: What condition of guns are likely to be offered at buybacks? What might be the elasticity of S? What are the S and D curves initially and with buyback programs? What happens to P and Q initially and with buyback programs?)
Garden Variety Flower Shop uses 870 clay pots a month. The pots are purchased at $3.60 each. Annual carrying costs per pot are estimated to be 40 percent of cost, and ordering
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