Budget constraints impose scarcity , and are based upon the limitation of the budget. how much utility one more unit of a good will provide. the prices of the items purchased. previousnext

The answer to this question is:
The prices of the items purchased
How much utility one more unit of a good will provide
The limitation of the budget
Budget constraints refers to the products that the consumer might buy after considering the amount of earning that they have. The lower the consumer's earning, the higher the tendency for that consumer to impose a budget constraints toward his/her spending

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