is a representation of the limits a person or organization faces in terms of their income and the prices of goods and services. It shows the different combinations of goods and services that can be purchased with the available resources, given the prices of those goods and services. The budget constraint is typically represented graphically as a straight line, with the slope determined by the relative prices of the goods and services being considered. By analyzing the budget constraint, individuals and organizations can make spending decisions to maximize their utility or profit within their financial constraints.
