1. This particular budget constraint appears to be absolutely binding.

2. Because what determines the slope of the budget constraint?

3. The government budget constraint is so that we must have or.

4. So the slope of that budget constraint is minus 1/ 2.

5. The slope of the budget constraint is the negative of the price ratio.

6. 26 Decisions made in the absence of a direct budget constraint, such as those made for Medicare reimbursement in health planning.