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5. A country called Criton is running a referendum on its international trade policy. After care- ful calculation, economists of the nation determine that the

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5. A country called Criton is running a referendum on its international trade policy. After care- ful calculation, economists of the nation determine that the optimal average tariff should be 5%. As always, voters have different preferences. Eighteen percent of the country are in the service sector, who are not exposed to any international competition, but benefit from cheaper foreign goods from lower tariffs, so for them the ideal tariff is 0. Twenty-ve percent of the country works in the manufacturing sector, who believe the tariff should be moder- ate at 20%. The remaining people believe the country should be independent and produce everything own their own, so they want a 1000% tariff. According to the median voter the orem, what is most likely to be the elected outcome? Briey explain why (10 pts)

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