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Median Voter Theorem
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Median Voter Theorem
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17. Asymmetric Information, Voting, and Public Choice / Median Voter Theorem / Problem 1
Problem 1
In a scenario where the median voter prefers a budget of \$60, but a significant portion of the population prefers \$20, what is a likely outcome?
A
The budget will be set at \$20, satisfying the majority.
B
The budget will be set at \$60, leading to dissatisfaction among those preferring \$20.
C
The budget will be set at \$40 as a compromise.
D
The budget will be set at \$80 to satisfy the minority.
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