Firstly, while it is assumed that a lower fraction of the city budget in Blue City is devoted to education, it might not be sufficient to assume that the city residents give less importance to education than Parson City. Since it is not provided any information regarding the demographic composition of this both cities it could be that they have different amount of residents in age to go to school. Therefore, since the fraction of the student population could be different …show more content…
Since it would be normal that residents in Blue city prefer to pay for a private school instead of allocating their budgetary funds in a public school system. Therefore, since it is not explained the structure of the demand for educational services in both cities it could be that one city has more private schools than the other, so it would be mistaken to assume that individuals in Blue City do not appreciate well enough the educational expenditures with the public resources. Therefore, the assumption that people in Blue City tend to give less importance to education cannot be