Budget Constraints

The bundles that are only just affordable form the consumer’s budget constraint. This is the set{ (x1,…,xn) | x1 ³ 0, …, xn ³ 0 and p1x1 + … + pnxn = m }.

The bundles that are only just affordable form the consumer’s budget constraint. This is the set { (x1,…,xn) | x1 ³ 0, …, xn ³ 0 and p1x1 + … + pnxn = m }.