Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter18: Public Economy
Section: Chapter Questions
Problem 11RQ: Why do legislators vote for spending projects in districts that are not their own?
Related questions
Question
There are two candidates in an election that compete only on the education budget they will enact if elected. The budget can be any integer from $1 to $8 and the distribution of voters’ preferences over these outcomes is given below. For example, there are 2 voters that prefer a budget of $1, 4 voters that prefer a budget of $2, and so on. Furthermore, all voters have single-peaked preferences. Assume the candidates’ sole objective is to receive as many votes as possible. (Image Attached)
a) Find a proposed budget for each candidate that constitutes an equilibrium. Explain.
![10
8
8.
8
6.
4
$2 $3 $4
$7 $8
$5
$1
$6
Preferred education budget (billions of dollars)
Number of voters](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a982693-f5c4-4ef7-aef8-5a8b039fbac6%2F65e8290d-a72d-4896-9db4-6194de27fa03%2Fu7pquxg.png&w=3840&q=75)
Transcribed Image Text:10
8
8.
8
6.
4
$2 $3 $4
$7 $8
$5
$1
$6
Preferred education budget (billions of dollars)
Number of voters
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax