Moore and her family live in a city with many private schools and one public school. The Moores are thinking about sending their only child to a private school because they would like a school that has more teachers and other resources per student than the local public school. The Moores must pay taxes to support local public schools, whether or not their child attends a private school. There is such a variety of private schools that the Moores can get almost any level of per-student contributions by choosing the right private school. Tuition at private schools is equal to spending per student. Draw a diagram to show Moore's budget constraint. Place per-student expenditures at the child's school on the horizontal axis and other assets on the vertical axis.

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To draw a budget constraint diagram for the Moore familys decision regarding private school tuition ... View the full answer