Answer to Question #79119 in Economics of Enterprise for Richard G Wright

Question

The state of West Dakota currently has per capita income of $35,500, average annual temperature of 43.0 degrees, median age of 37.5 years, and 48.0% (or 0.48) of the population in a metro area. The state suddenly experiences an improvement in its economy, and increases its per capita income to $38,600. This improvement will likely be associated with the burglary rate changing from about 519 annual burgles to about ___ annual burgles (round your answer to the nearest whole number, no decimals).

Answer 1

The state of West Dakota currently has per capita income of $35,500. If the state suddenly experiences an improvement in its economy, and increases its per capita income to $38,600 and of we suppose that there is an inverse relationship between per capita income and burglary rate, then this improvement will likely be associated with the burglary rate changing from about 519 annual burgles to about 35,500/38,600*519 = 477 annual burgles.