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The Budget Constraint


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Graphing the Budget Constraint
The Budget Constraint
Since the equation for the budget constraint defines a straight line, the budget constraint can be drawn by just connecting the dots that were plotted in the previous step.

Since the slope of a line is given by change in y divided by change in x, the slope of this line is -9/6, or -3/2. This slope represents the fact that 3 beers must be given up in order to be able to afford 2 more slices of pizza.

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