3 Tutorials that teach Budget Constraints: Change in Price
Take your pick:
Budget Constraints: Change in Price

Budget Constraints: Change in Price

Author: Justin Tapp
This lesson will explain Budget Constraints: Change in Price
See More

You demand. We supply.
Take Microeconomics for just $329.

Sophia college courses cost up to 80% less than traditional courses. *


Notes on "Budget Constraints: Change in Price"

Terms to Know

Budget Constraint

The graphical depiction of consumer income relative to the price of goods available. Where the budget constraint touches the highest indifference curve available, the consumer is defined to be optimizing consumption.


The cost of goods or services.

Income Effect

Consumers’ purchasing power changes as income changes, affecting demand for a good or service.

Substitution Effect

When income decreases or price rises, cheaper goods and services are consumed instead of the more expensive alternative.