You have been hired by the US Secretary of Education to assess the impact of emergency responses to the Covid crisis. Assume the federal government sent each K-12 school district $2,000 per child (HISD spends about $14,000/child) because of the economic fears from the Covid pandemic. In turns out, however, that school districts did not have a change in property tax revenue, nor did the states have a change in their total revenues. So the $2,000 federal grant per student was an increase in school resources. The problem, of course, is that a lot of instruction changed to on-line, for which the school districts were not fully prepared. This policy memo asks you to think about demand for school district outputs, and to consider at the same time what are the objectives of school administrators, before you conclude with a response to the Secretary. There are two modeling approaches (at least) you could take. It would be perfectly reasonable to model taxpayer choices with a demand curve- use this tool to model how taxpayer demand might change. An alternative seemingly equally valid model would be to consider that the cost of a given educational quality changed. Based on the predictions, which of the two models (shift in demand, or shift in costs) makes more sense?

*** This questions is asking you to draw the graphs for a demand curve shift and a graph for a cost shift curve. Thanks.