The Consumers budget Constraint Any point on the budget constraint line indicates the consumer's combination or tradeoff between two goods For example, if the consumer buys no pizzas, he can afford 500 pints of Pepsi (point B). If he buys no Pepsi, he can afford 100 pizzas (point A) The slope of the budget constraint line equals the relative price of the two goods, that is, the price of one good compared to the price of the other o It measures the rate at which the consumer wil trade one good for the otherThe Consumer’s Budget Constraint • Any point on the budget constraint line indicates the consumer’s combination or tradeoff between two goods. • For example, if the consumer buys no pizzas, he can afford 500 pints of Pepsi (point B). If he buys no Pepsi, he can afford 100 pizzas (point A). • The slope of the budget constraint line equals the relative price of the two goods, that is, the price of one good compared to the price of the other. • It measures the rate at which the consumer will trade one good for the other