Budget constraints, Microeconomics

Budget Constraints 

* The Budget Line

- The budget line indicates all the combinations of 2 commodities for which total money spent equals the total income.

* The Budget Line

- Let F equal the amount of food which is purchased, and C is amount of clothing.

- Price of food = Pf and price of clothing = Pc

- Pf F is the amount of money spent on food, and PcC is amount of money spent on clothing.

* The budget line then can be given by: 

1088_budget constraints.png

Posted Date: 10/10/2012 5:37:51 AM | Location : United States







Related Discussions:- Budget constraints, Assignment Help, Ask Question on Budget constraints, Get Answer, Expert's Help, Budget constraints Discussions

Write discussion on Budget constraints
Your posts are moderated
Related Questions
Trade union can also pay a useful role in improving the wages of the workers without causing adverse effects on employment. This case which is intensely associated with the idea of

COST-OF-LIVING INDEXES   * The CPI is computed each year as the ratio of cost of a typical group of consumer goods and services today in comparison to the cost during a base per

This firm will maximize profits by producing the level of output that corresponds to point: a. b. c. or d. ??   Refer to Figure for a perfectly competitive firm. Given the

In equilibrium, what are the letters and the total dollar amounts that correspond to the area for the... i. Original Consumer Surplus?  ii. Original Producer Surplus? iii.

MRP Technique- Sectoral Distribution of Targeted Increase in GDP There are two ways of increasing the GDP: (i) Project and accomplish the growth in various sectors through

how can draw the table and diagram of production function function with one veriable

What are the three major types of unemployment?   a) Frictional b) Structural and c) Cyclical unemployment. Cyclical unemployment is broadly spread by an economy durin

An ole firm can use its own data of past years regarding its sales in past years. These data are known as time series of sales. A firm can predict sales of its product by fitting t

Survey Methods: The most direct method of forecasting demand in the short run is survey method. Surveys are conducted to collect information about future purchase plans of the