FIGURE 2.2 The Budget Constraint: Alphonso’s Consumption Choice Opportunity Frontier Each point on the

budget constraint represents a combination of burgers and bus tickets whose total cost adds up to Alphonso’s

budget of $10. The relative price of burgers and bus tickets determines the slope of the budget constraint. All along

the budget set, giving up one burger means gaining four bus tickets.

The vertical axis in the figure shows burger purchases and the horizontal axis shows bus ticket purchases. If

Alphonso spends all his money on burgers, he can afford five per week. ($10 per week/$2 per burger = 5

burgers per week.) However, if he does this, he will not be able to afford any bus tickets. Point A in the figure

shows the choice (zero bus tickets and five burgers). Alternatively, if Alphonso spends all his money on bus

tickets, he can afford 20 per week. ($10 per week/$0.50 per bus ticket = 20 bus tickets per week.) Then,
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