Should a driver expect pedestrians walking along the road beyond this sign?
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Correct answer
YES
Explanation
Sign D-40 "residential area" marks the entrance to a zone where different rules apply than on an ordinary street. A pedestrian does not have to walk on the pavement or cross at a pedestrian crossing here - they may use the whole width of the road and have right of way over vehicles. So beyond this sign you must expect pedestrians walking along the roadway, also in the middle of it.
The Road Traffic Act says that the rules on the obligation to use the pavement, the shoulder and the left side of the road do not apply in a residential area, and a pedestrian there may use the whole width of the road and has right of way over vehicles and over a person using a mobility aid. In addition, the speed limit is 20 km/h, and speed bumps may be unmarked. You drive as if any pedestrian could change direction at any moment.
Legal basis: Art. 11 para. 5 and Art. 20 para. 2 of the Road Traffic Act (Prawo o ruchu drogowym); § 58 para. 1 and 2 of the Regulation on road signs and signals