Problem: The town of Greenville has three families, each with one child, and each of which earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the town, which any family can then freely attend. Education spending is $6,000 per student in the public schools. The three families differ in their preferences for education. Though families A and B both send their children to the public school, family B places a greater value on education than family A. Family C places the greatest relative value on education and sends its child to private school.

Required:

Question: Graph the budget constraints facing each of the three families and draw a possible indifference curve which could correspond to the choice each family makes. Please show steps how you get an answer and please be clear in your explanation.