Budget Constraint


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Budget Constraint

The goods and services an individual is able to purchase over a given period of time at his/her current income. A budget constraint may be represented on a chart according to the following equation:

Pxx + Pyy = m

Px is how much a good costs;

x is the quantity of that good one purchases;

Py is the price of all other goods and services;

y is the quantity of all other goods; and

m is the amount of money one has allocated for consumption.
References in periodicals archive ?
He said, 'The only place in the company that doesn't have a budget constraint is that area, because how would I know how to assess, why would I take my judgment and say you could do this cheaper.
This is called the budget constraint - you are subjected to it, I am subjected to it, the Government is subjected to it.
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As budget constraints force governments to delay major new procurement programs, upgrades of current EW systems will be the larger revenue stream till 2018.
Van Taylor, R-Plano, spent much of the session pushing for tighter budget constraints and tax cuts.
WASHINGTON, March 6 (KUNA) -- US Defense Secretary, Chuck Hagel, called his counterparts around the world, including those in Egypt and Saudi Arabia, to express his commitment to military cooperation despite the budget constraints in Washington.
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Mission College has hungered for a winner since the school's athletic programs returned to competition four years ago after a five-year hiatus, the result of budget constraints.
The 215-pupil school has laid off one member of its teaching staff because of budget constraints.