Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?
A)The Condorcet Paradox predicts that the $100 budget will win even though fewer people prefer that budget.
B)The median voter theorem predicts that the winning budget will be $125, the median of the preferences of the two types of voters.
C)Arrow's impossibility theorem says that the winning budget cannot be determined in this election since there is no unanimity.
D)None of the above.

Question

Quizplus · Accepted Answer

The Condorcet Paradox and Arrow's impossibility theorem do not apply directly to this situation. The median voter theorem does not predict a $125 budget because it only applies when there is a single-peaked preference, and there are only two options here.

Suppose That There Are 175 Voters in an Election and That