Each month is represented by G = 100 - 2C.
- A budget constraint in economics refers to all the combinations of goods and services that a consumer can buy given current pricing and his or her allocated income. Consumer theory examines the dimensions of consumer choices using the notions of a financial constraint and a preference map as tools.
- A budget constraint occurs when a consumer's consumption patterns are restricted by a fixed income. When analyzing the demand schedule, we frequently consider effective demand. Effective demand is what consumers can actually spend given their income constraints.
- Assume the cost of beer is $2 and the cost of pizza is $3. Then suppose the consumer has $18 to spend. The price of a beer is written as 2B, where B indicates the number of beers consumed. Furthermore, the cost of pizza can be represented as 3P, where P represents the quantity of pizza consumed.
Thus this is the meaning of Budget Constraint.
To learn more about Budget Constraint, refer: https://brainly.com/question/9313573
#SPJ4
