The Budget Constraint: it's what the consumer can afford!
Let's think of it from the buyer's perspective...
We all want to increase both the quality and quantity of the goods that we purchase/consume. We want:
- Exotic vacations
- Expensive cars
- To eat at the most expensive restaurants
We only consume less than what we actually desire because our spending is constrained by our income. Then we see rising gas prices and that certainly doesn't make us feel well about the new gas guzzler we purchased. And you can forget that $35 steak platter, we're doing In-&-Out tonight!
Searching for your first home...
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Article of Interest:
Announcing A New Book Club Blog Series: Rich Dad, Poor Dad
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And if you haven't already,