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Use a graph of budget sets and standard indifference curves to show that it is possible that a competitive consumer chooses to have her child go to a public school even though the parent would be better off if no public education were available and no school taxes charged. Explain carefully, in a way that would be understandable to someone who has studied intermediate level microeconomics, but not taken this course, why the budget lines in your graph represent the consumer’s situation with and without availability of public education and why your graph shows the conclusion that is asked for in this problem.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91843874

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