Implication of the Law of Demand --- A live Example:

Since the increase in the penalties for failing to comply with traffic signals on January 1, 2006, the numbers of traffic accidents and prosecutions involving red light jumping have been remarkably reduced.

In the first eight months in 2006, the average number of traffic accidents involving drivers disobeying traffic signals was 20 cases per month representing about 30% reduction compared with 28 cases per month of the total number of traffic accidents in 2005.

The increase in penalties has increased the deterrent effect against red light jumping. The average number of prosecutions against red light jumping has reduced in 2006 despite the increase in the number of red light cameras.

The penalties for failing to comply with traffic signals have increased from 3 to 5 driving offence points and the fixed-penalty fine has increased from $450 to $600 as effective from January 1, 2006.

by tcwong© http://wongtc.blogspot.com/