2. The figure below contains the constrained utility maximization problem for a single individual in society. Imagine that this person can choose to spend her money (i.e., consume] on education for her children or use it for retirement savings. Use this gure to answer the following questions. Education Retirement 2.1. If this individual wishes to maximize her utility given budget constraint B01. which bundle of education and retirement spending would she consume (label this point \"A\"] and on which indifference curve does this bundle lie? 2.2. Now imagine that the government has implemented a subsidy program for education that drastically decreases its price {from 1301). Which bundle of education and retirement spending would she consume {label this point \"13\") and on which indifference curve does this bundle lie? Is the individual better or worse off than before the subsidy program? Is this change in the consumption of goods an example of the substitution or income effect? Why? 2.3. Now imagine that the government feels that people are spending too much on education and are neglecting retirement savings. Holding utility constant from the (ll the substitution 01' income eiieot'r Wily? 2.3. Now imagine that the government feels that people are spending too much on education and are neglecting retirement savings. Holding utility constant from the l indifference curve where consumption rests in 2.1., what might the government do to induce more retirement savings? Is the individual better or worse off than before the subsidyF government's actions? Draw the new budget constraint and label it \"BCI'. Is this change in the consumption of goods an example of the substitution or income effect? Why? 2.4. In an ideal world, how would the government decide to choose to implement the policies of 2.2. and 2.3.? What. term from the text. describes this scenario