Answer to Question #47622 in Microeconomics for sondra

Question

link between the budget line and the budget contraint

Answer 1

A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices. Both concepts have a ready graphical representation in the two-good case. Budget line is just another name of the budget constraint.