Asked by
susma dhakal
on Nov 04, 2024
Verified
When the price of a good increases, the budget constraint does not change.
Budget Constraint
The limitations on the consumption patterns of individuals or households, given their income and the prices of goods and services.
- Gain insight into how budgetary restrictions influence the choices available to consumers.
- Identify and analyze changes in the budget constraint resulting from changes in the price of complementary and substitute goods.
Verified Answer
GA
Learning Objectives
- Gain insight into how budgetary restrictions influence the choices available to consumers.
- Identify and analyze changes in the budget constraint resulting from changes in the price of complementary and substitute goods.