Imagine a Situation Where Two Parties Compete for the Votes

question 3

Multiple Choice

Imagine a situation where two parties compete for the votes of three voters. Ideologically, the actors are aligned along a left-right dimension as shown below. Where will the parties move to maximize votes according to Downs?

• A) Party A to Voter 3, Party B to Voter 2.
• B) Party A to Voter 2, Party B to Voter 2.
• C) Party A to the centre of the line, Party B to Voter 3.
• D) Party A to Voter 1, Party B to the centre of the line.

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Definitions:

Interest Rates

A charge, calculated as a percentage of the principal, demanded by a lender from a borrower for assets' usage.

Disposable Income

Income that remains for saving or spending after direct taxes (such as income tax) have been deducted from an individual's earnings.

Saving

The process of setting aside a part of current earnings for future use.

Interest Rate

Interest Rate is the cost of borrowing money, typically expressed as a percentage of the amount borrowed, affecting savings, investment, and consumer spending.