The following graph depicts three families, X, Y, and Z, and their utility based on spending on education and other goods. Suppose free public education is provided and the new budget constraint is shown in red. What can be said about family Y because of free public education? Other goods spending G G3 G4 E1 EF E2 E3 Education spending O They have an increase in educational spending, but a decrease in spending on other goods They have an increase in both spending on other goods and in education They have an increase in spending on other goods, but a decrease in educational spending They have a decrease in both spending on other goods and in education O They do not have a change in their spending on other goods or in education

The following graph depicts three families, X, Y, and Z, and their utility based on spending on education and other goods. Suppose free public education is provided and the new budget constraint is shown in red. What can be said about family Y because of free public education? Other goods spending G G3 G4 E1 EF E2 E3 Education spending O They have an increase in educational spending, but a decrease in spending on other goods They have an increase in both spending on other goods and in education They have an increase in spending on other goods, but a decrease in educational spending They have a decrease in both spending on other goods and in education O They do not have a change in their spending on other goods or in education

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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