1. Using the substitution effect and income, we can explain changes 1. Using the substitution effect and income, we can explain changes inindividual behavior when the government runs tuition subsidies for highereducation programs. Describe the individual changes that occurred? Is there asubstitution effect and an income effect? 2. Social security resulted in a long-run fiscal crisis. What are theconsequences of lowering the social security budget? 3. What are the consequences of higher indirect tax revenue than directtax revenue? Business EconomicsECON 123
