We show a reduction in income as a shift down to the left in the budget constraint. Since only income has changed and prices have not, the slope of the constraint remains unchanged.

    In the case shown to the right, our consumer's income (or available funds for entertainment) has been cut in half to $600. If she spends all her money on Movies, at $40 per evening, she can only go to 15 each year, instead of the 30 she could afford before. Since price hasn't changed the slope is still -2/3, so for every 2 evenings at her favorite club she gives up, she can afford 3 more movies.

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