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.
As its name suggests, the benefits budget constraint defines the locus of maximum benefits the regulator is able to deliver to the affected interest groups.
Without a long-range budget constraint on social security, it will be much more difficult to limit future benefit growth.
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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.
Courthouse in Lakeland will cut back its hours of operation by a half hour due to budget constraints.
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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.