Question: The analysis surrounding Figure assumes that public schooling is a "take-it-or-leave-it" option. That is, individuals are not allowed to supplement public education with private les-sons. Show how the diagram must be modified if, to the contrary, parents can purchase additional hours of education for their children who are enrolled in public school. Mother assumption behind the model is that public education is "free" in the sense that parents do not pay any taxes for it. Show how the model must be modified if public school is financed by taxes levied on parents.
