The budget constraint indicates all the combinations of burgers and bus tickets Alphonso can afford before he exhausts his budget, given the prices of the two goods. The vertical axis in …

We can actually substitute these numbers in here and then we can actually plot what essentially this budget line will look like. In our situation, 20, Y = 20, the price of chocolate is equal to 1.

The budget line shows all possible combinations of two goods a consumer can purchase if the entire income is spent. The equilibrium of the indifference curve is at the point at which the …

The budget constraint is typically illustrated graphically as a straight line or curve in a two-dimensional space representing different combinations of goods or services that can be …

Budget lines show all of the different combinations of two goods that are affordable. Along a single budget line, the prices of each good are not changing and income is not changing, only the …

You need to know a little calculus to calculate the optimum point. The trick is that at the optimum point the slope of the budget line and the slope of the indifference curve is the same. Thus, …

Each of these approaches provides a way to determine how to maximize total utility based on your preferences, constraints, and available information, without explicitly drawing a graph.

You can get a feel for this problem using the following interactive diagram, which let's you see which values of (h, s) yield a given revenue (blue curve) and which values satisfy the …

Khan Academy ... Khan Academy

When allocating a budget, we can use the concepts of marginal utility and marginal benefit to help us decide where our money is best spent. In general, we should allocate our budget towards …