Figure 1 Illustrates an Election in Which There Are Seven

question 28

Multiple Choice

Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right) . Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as "office-seeking" parties since they only care about winning the election and getting into office.
Figure 1: Illustrating the Median Voter Theorem

-Now suppose that P₁ locates at position 4 on the left-right issue dimension and that P₂ locates at position 4. Who wins the election in the situation illustrated by Figure 1?

• A) The two parties tie.
• B) P₁ wins.
• C) P₂ wins.

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Definitions:

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.

Inventory Policy

The set of guidelines a company follows to determine how much inventory should be kept on hand to meet customer demand and manage supply chain efficiency.

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.

Pricing Schedules

Established plans listing prices for different products, services, or conditions, often varying based on volume, timing, or contract terms.