Assuming that the two key restrictions on preferences fundamental to t

Assuming that the two key restrictions on preferences fundamental to the median voter model hold, list the condition that must be satisfied for the outcome preferred by median voter to be considered economically efficient.

List one real world example that comes close to this condition.

ANSWER

In order for the outcome preferred by the median voter to be economically efficient, the median voter’s share of the total demand for the good must equal the median voter’s tax share. One real world example that approximates this condition is gasoline taxation that pays for highway funding.