Instead, the city decides to provide level E of public education, financed through lumpsumtaxation on each household. Three levels of provision are...

Instead, the city decides to provide level E of public education, financed through lumpsumtaxation on each household. Three levels of provision are considered: Low (L),Medium (M), and High (H). Household preferences over each level of E are given: Household A prefers H to M and M to L and H to L Household B prefers M to H and H to L and M to L Household C prefers L to M and M to H and L to Hc. (15 POINTS) Would pair-wise voting result in a stable outcome E* (draw thepreferences of each household type to see if they are multiple peaked)? Canwe use the median voter theorem to determine the stable outcome? If so,determine provision level E* and demonstrate that this outcome is indeed stable