1. Tom, Jerry, and Butch are the committee responsible for planning Oxford's 2-year anniversary party. They decide by majority rule how much money to spend on the party. The consulting firm they hire has presented three options for per-person spending on the party: 50, 75, and 125. The committee members rank the options as follows: Rank Tom Jerry Butch
   1 125 75 50
   2 75 50 75
   3 50 125 125
   1. Consider all possible pairwise votes. Does majority rule lead to a stable outcome on party expenditure? If so, what is the choice? If not, why not?
   
   2. Now, suppose that Butch's preference ordering is changed to the following: first choice = 50, second choice = 125, third choice = 75. Considering all possible pairwise votes, does majority rule lead to a stable outcome on party expenditure? If so, what is the choice? If not, why not?
   
   3. Assume that Tom is in charge of setting the agenda of the pairwise votes on the party expenditure policy. Explain how he could set the voting agenda so that his most-preferred level of expenditure is the voting outcome, given the preference ordering from part (2).

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