Raise the rates of the fines in order to increase the revenue per fine.
Lower the rates of the fines in order to increase the number of fines.
Total votes: 38
Learning objectives:
Understanding the effects of price variations on quantity demanded and revenue.
Understanding the concept of price-elasticity of demand.
Understanding the similarities and differences between a tax and a fine.
Understanding the concept of the Laffer curve.
Applying the concept of the Laffer curve to traffic fines.
Presentation videos:
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