In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and that the fine for receiving the ticket is f. Suppose that all individuals are risk averse (i.e., U00(W) < 0, where W is the individual’s wealth). Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? Hint: Use the Taylor series approximation U(W % f ) ¼ U(W) % f U0(W) þ ( f 2/2)U00(W).

See attachmrnt for comolete solving.

Step-by-step explanation:

Given that;

In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and that the fine for receiving the ticket is f. Suppose that all individuals are risk averse (i.e., U00(W) < 0, where W is the individual’s wealth). Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? Hint: Use the Taylor series approximation U(W % f ) ¼ U(W) % f U0(W) þ ( f 2/2)U00(W).

See attachment

Add the ratios 3:1 = 4
divide perimeter 128 by 4 = 32
multiply this by each ratio so 3:1 becomes 96length:32width
remember there are two lengths and two widths in the perimeter so divide by 2 to find the length = 48