1. Chapter 2 Budget Constraint

2. The Budget Constraint  m=p1*x1+p2*x2  where I=income, assumed to be given  p1=price of x1, assumed to be given.  p2=price of x2, assumed to be given.

3. 02.01

4. Key elements that affect the budget line  m (shifting the line up or down without affecting its slope)  Either p1 or p2 affects its slope and position

5. 02.02

6. 02.03

7. 02.04

8. 02.05

9. 02.06

10. x1 x2 Budget line: Buy one and get the second one at half price 1234

11. x1 x2 Budget line: Buy one get one free 12 3 4

12. This concludes the Norton Media Library Slide Set for Chapter 2 Intermediate Microeconomics 6 th Edition by Hal R. Varian W. W. Norton & Company Independent and Employee-Owned