All people in the province have the same preferences over private consumption c and public spending, represented by the utility function U i (c, g) =...

Ui(c, g) = ci + 2√ g,

where g is government spending per person. People differ in their income, yi . The mean income in the economy is $60, 000 and median is $40, 000. Government spending is financed by proportional income tax at a rate t.

Two candidates in the province compete for votes by promising some level of g. What level should each candidate choose to win the majority of votes? Explain briefly the intuition behind the result.