Budget Constraint

… a core term used in Economic Analysis and Atlas102

Definition

Economics Help specifies that a budget constraint occurs when a consumer is limited in consumption patterns by a certain income.

Economics Help goes on to say:

“When looking at the demand schedule we often consider effective demand. Effective demand is what people are actually able to spend given limitations of income. Temporary budget constraints can be overcome by borrowing, but in the long term budget constraints are determined by income such as rent and wages.”

Atlas topic, subject, and course

Supply, Demand, and Equilibrium (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Economics Help, at https://www.economicshelp.org/blog/glossary/budget-constraints/,  accessed 30 April 2016.

Page created by: Ian Clark, last modified 30 April 2016.