Answer to Question #73344 in Microeconomics for anjie

Question

Consider a demand curve for reckless driving, for which the "price of reckless driving" is interpreted as the probability of having a fatal accident. When could safer cars lead to an increase in total number of driver fatalities?
A. Always.
B. Never.
C. When the demand curve is relatively flat.
D. When the demand curve is relatively steep.

Answer 1

If the "price of reckless driving" is interpreted as the probability of having a fatal accident, then safer cars never lead to an increase in total number of driver fatalities.
So, the correct answer is
B. Never.