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4. Ed Moore and his family live in a city with many pri- vate schools and one public school. The Moores arethinking of sending their
4. Ed Moore and his family live in a city with many pri- vate schools and one public school. The Moores arethinking of sending their only child to private school because they would like a school that has more teach- ers and other resources per student than the local pub- lic school. The Moores must pay taxes to support local public schools whether or not their child goes to pri- vate school. There is such a variety of private schools that the Moores can get just about any level of inputs per student by choosing the appropriate private school. Tuition in the private schools equals expenditure per student. Draw a diagram to show the Moores' budget constraint. Put expenditures per student in the child's school on the horizontal axis and other goods on the vertical. ANS One point is (x. d), where x is expenditures per pupil in public school and dis disposable income. The rest of the budget is a line with slope -I from (2s, d-x) to the x axis. DIF: 3
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