$12$:$04$

$\mathrm{.}11$

$5$G

$81$

Done

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Hint

$/1500$

Question $10$ of $15>$

De of the factors determining the size of traffic tickets in Finland is the income of the person being issued the ti pereding as a good that some people in Finland value. Further, think of the price of speeding as the size of the tra he probability of being caught speeding $($that is assumed in this case to be the same for everyone$).$

If$,$ instead of trying to minimize speeding, the Finnish government is trying to maximize revenue from tickets, what must it think about the elasticity of demand for speeding of high$-$income people comparec low$-$income people?

If the size of traffic tickets is directly proportional to income, then the Finnish government must think th elasticities of demand for speeding of high$-$income and low$-$income people are the same since the price income$)$ paid by each is the same.

The Finnish government must think that that low$-$income people have less elastic demand than high$-$incc since low$-$income people are getting charged a lower price.

The Finnish government must think that high$-$income people have less elastic demand than low$-$income since high$-$income people are getting charged a higher price.

$2.$ Before $1999,$ Finnish drivers were on the "honor system" and were asked their income by the officer issuing After $1999,$ police officers started to look up drivers' incomes before issuing the ticket.

Will this ability make price discrimination more or less effective?

Price discrimination will be more effective since police officers will now be able to better tell which indi have less elastic demand.

Price discrimination will be neither more nor less effective since the price of the ticket is not affected by new technology.

Price discrimination will be less effective since the government now has to spend money on devices that saved by asking the driver for his level of income.