QUESTION 3 In Babelia, elections will be determined by the position of the three

Question

QUESTION 3 In Babelia, elections will be determined by the position of the three candidates on the income tax. The population is uniformly spread on their preferences over the tax rate on the interval [20,40] and voter will vote for the candidate that proposes the tax rate that is closest to their preferences. The discussion is whether to set the rate at 25%, at 30% or at 40% The Constitution of Babela does not allow for any other rates in a bold move candidate A has committed and announced to set a 30% rate if she is elected to office The other two candidates wil have to announce their platform simultaneously the local news channel is covering this at 9 oclock and so candidates B and C should let the anchorwoman know their choices by then.) Who do you think will win the election? O Candidate A O Candidate B O Candidate C

Explanation / Answer

B because according to median voter theorem middle positions are preferred over extreme ones

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