budget constraint

Definitions

Economics

  • noun a requirement to make different levels of purchase of different goods at different prices, given that the purchaser has a fixed amount of money to spend

Health Economics

  • (written as Budget Constraint)
    Sometimes termed 'budget line'. The limit to expenditure imposed by a cash-limited budget. It is often represented as a straight line in geometrical representations of a consumer's choice possibilities between two goods or services, where it shows the limiting boundary of combinations of purchases that are possible with that budget. Often used in conjunction with indifference curves to indicate the choice that would be made by a utility-maximizing individual.
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