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Examples Of Budget Constraint

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Introduction: Consumers need so many goods and services, but the budget is, however, limited. In such limitations, consumers often learn to improvise and make sure they consume within their budget constraint. This essay has laid out a time the author was indifferent between two goods, what the goods were and what made him indifferent between the two goods. Additionally, this essay explores a time there was a change in the author’s budget for two goods, what the goods were, and how the change affects his consumption choices. Finally, the essay examines the time the author applied the utility maximization rule, what the goods and services were, and how the process relates to the author’s budget constraint. Name a time you were indifferent between …show more content…

A budget constraint is “a restriction that total spending cannot exceed the budget available” (Rittenberg & Tregarthen, 2012, p. 289). As a consumer, my income is limited; therefore, with the number of items I collected, I had already exceeded my budget so I applied the budget constraint rule by adjusting and reducing the items. However, the marginal utility per dollar I spent on the designer shirt equal the satisfaction the pair of shoe would have given me. From what a budget constraint is, I was able to buy the items I needed within the budget (OpenStax, 2014). This is how the goods I choose to maximize my utility relate to my budget …show more content…

In my case, Pepsi Cola and Coca-Cola gave me equal satisfaction and utility. There are several times I had a change in budget for two goods. Most times, the prices of goods skyrocketed and I often had to adjust my budget to meet the demand. Furthermore, consciously or unconsciously, I have applied the utility maximization rule. I applied it when I bought a double-breasted suit, a designer shirt, and a perfume; dropping the shoe instead. I was able to relate to my budget constraint by ensuring that I did not go over my budget while still maximizing my

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Task 5 According to the utility theory, consumers would change their spending pattern if the satisfaction they gain from the products or the price of products alter. For instance, initially a consumer may be allocating her spending between two products, X and Y such as: Marginal utility of X = Marginal utility of Y Price of X Price of Y 20 = 35

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Nevertheless, the interviewees frown upon being labelled as someone that values luxury over reasonable spending. Hence, they expressed their emphasis on the importance of needs over wants, and that practicality should triumph over extravagance. They see “limited” consumption as a form of self discipline, where excessive spending was only justifiable when it is spent on the family and invested in the children. If

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Consumerism in relation to women is blatantly sexist in that it produces an ideology that female consumers are constantly purchasing extravagant items because they are incapable of spending money rationally. The theory continues to suggest that female consumers are searching to enhance their femininity to appeal to the binary gender

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Mark Spitz states that “he was crestfallen when he ate at another location for the first time” and he recognized the “same stuff on the wall” (189). This moment is crucial because it emphasizes how even the most precious and sentimental aspects of our life are a result of consumer culture. Many aspects cleverly crafted to appear as a one-of-a-kind product or experience actually result in a slightly customizable template. Similarly, Sorensen explains consumerism as “the capacity to realize and replicate itself by borrowing against the guaranteed promise of the future as the site of more of the same and of endlessness of reproduction without difference” (562-3). Whitehead further supports this idea by illuminating the reproduction of a one-of-a-kind

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Solution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome.

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In the 21st century, we consume so frequently that we do not take notice; consumerism consumes us. Consumerism is an integral

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Cut some expenses- If you’re having problem managing your budget to save, you might want to cut off some of your expenses. The first thing you can do is remove “luxuries” for your budget list. You don’t have to go to the spa every single week and you can survive without taking a taxi home every day from work.

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