If the price of an evening at the movies increases, our consumer can afford fewer such evenings in a year. Suppose the price of an evening at the movies rises to a whopping $75 for our consumer. This would mean that, if she spent all her money on movies she could only see 16 in a year, so that endpoint of her budget constraint shifts inward as shown to the right.
The slope of the budget constraint has also changed since the prices have changed. The new slope reflects the new price ratio or market rate of exchange of -5/4
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