You're making the mistake of inferring demand from the budget, which is exactly the overly simplistic economic analysis I was warning about. If inflation raises

You're making the mistake of inferring demand from the budget, which is exactly the overly simplistic economic analysis I was warning about. If inflation raises the price of all goods, does that show increasing real demand? Of course not. In this case, not only are there not fewer kids demanding education, there are actually more of them, and offering (proportionate to the tax revenue available) the same 'price' as they were before. The fact that the tax revenue contracted does not in any way indicate a lessening in real demand, any more than inflation reflects a real increase in demand.