The Budget Constraint The budget constraint depicts the consumption"bundles"that a consumer can afford People consume less than they desire because their spending is constrained, or limited b y their income e It shows the various combinations of goods the consumer can afford given his or her income and the prices of the two goodsThe Budget Constraint • The budget constraint depicts the consumption “bundles” that a consumer can afford. – People consume less than they desire because their spending is constrained, or limited, by their income. • It shows the various combinations of goods the consumer can afford given his or her income and the prices of the two goods