The Piece Method question

Hi, can anyone help enlighten me:

In the second blank, why it would be unsuprising for people when the government ‘rejects’ the increase in penalty?

Should the people be suprised if government does not increase the penalty since it means that government is ok with people speeding? And not be suprised if government increase the penalty (since people like speeding, therefore government want to avoid speeding issues → government want to increase speeding penalty)?

It says so in the question.

Yes, but not at the cost of angering people.

What do you think is the role of the phrase “acceding to public demand”?