the price rises, the budget constraint rotates clockwise. The dashed lines make it possible to see at a glance

whether the new consumption choice involves less of both goods, or less of one good and more of the other. The

new possible choices would be fewer baseball bats and more cameras, like point H, or less of both goods, as at

point J. Choice K would mean that the higher price of bats led to exactly the same quantity of bat consumption, but

fewer cameras. Theoretically possible, but unlikely in the real world, we rule out choices like L because they would

mean that a higher price for baseball bats means a greater consumption of baseball bats.

After the price increase, Sergei will make a choice along the new budget constraint. Again, we can divide his
choices into three segments by the dashed vertical and horizontal lines. In the upper left portion of the new

budget constraint, at a choice like H, Sergei consumes more cameras and fewer bats. In the central portion of
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