11.

The Anteater Family can spend its money on education (e) or other goods (g). The family's utility over e and g is given by U (6, g) = 2605 + 2905 The Anteaters have income of $30,000 to spend on e and g each year. Assume there is no public education system; the only option is to send their children to private school. Assume the price per unit (e.g., per hour) of private education is $100, and the price per unit of other goods is $100. The number of units of private education the Anteaters optimally consume is 225 units (enter only a number in the blank, and round to the nearest integer if necessary). As in the previous question, the Anteater Family can spend its money on education (e) or other goods (g). The family's utility over e and g is given by U(, g) 2280'5 +2905 The Anteaters have income of $30,000 to spend on e and g each year. Assume there is no public education system; the only option is to send their children to private school. However, now the government subsidizes private education for families like the Anteaters, such that the price per unit (e.g., per hour) of private education is $50 (instead of $100). Assume the price per unit of other goods is still $100. The number of units of private education the Anteaters optimally consume with the subsidy is 400 units (enter only a number in the blank, and round to the nearest integer if necessary). As in the previous two questions, the Anteater Family can spend its money on education (e) or other goods (g). The family's utility over e and g is given by U(e, g) = 280'5 + 290'5 The Anteaters have income of $30,000 to spend on e and g each year. Now, however, there is the option of sending children to public school. If the Anteaters send their children to public school, they get 250 units of e for a price of $0. If the Anteaters send their children to private school, they can choose any number of units of e at a price of $50 per unit (as in Question 12). The price of all other goods remains $100 per unit. Calculate the utility level associated with sending their children to public school and spending all their money on other goods. Calculate the utility level associated with sending their children to private school and spending their remaining money on other goods (i.e., the utility level associated with the choice derived in Question 12). Given your answers, the Anteaters will send their children to 'Ubllc V school. In this case, free public education [Select] V increases the quantity of education the Anteater children decreases does not change As in the previous two questions, the Anteater Family can spend its money on education (e) or other goods (g). The family's utility over e and g is given by U03, 9) 2280'5 +2905 The Anteaters have income of $30,000 to spend on e and g each year. Now, however, there is the option of sending children to public school. If the Anteaters send their children to public school, they get 250 units of e for a price of $0. If the Anteaters send their children to private school, they can choose any number of units of e at a price of $50 per unit (as in Question 12). The price of all other goods remains $100 per unit. Calculate the utility level associated with sending their children to public school and spending all their money on other goods. Calculate the utility level associated with sending their children to private school and spending their remaining money on other goods (i.e., the utility level associated with the choice derived in Question 12). ters will send their children to [Select] V PUbllC school. In this case, free public education private increases V the quantity of education the Anteater children receive. As in the previous three questions, the Anteater Family can spend its money on education (e) or other goods (g). The family's utility over e and g is given by 01839) =2e.5+2gO.5 As in the previous question, the Anteaters can send their children to public school in which case they get 250 units of e for a price of $0. Alternatively, they can send their children to private school, in which case they can choose any number of of e at a price of $50 per unit (as in Questions 12 and 13). The price of all other goods remains $100 per unit. However, now suppose that, as a result of the introduction of the public school option, the Anteaters must pay taxes that reduce their income to $24,000. They must pay these taxes regardless of whether they send their children to public or private school (so their income is $24,000 no matter their choice). Does the reduction in income owing to taxes change the Anteaters' choice of which type of school to send their children? Yes, they would choose differently than in Question 13. O No, they would choose the same as in Question 13