Based on Dawn's budget constraint represented in the graph, if Dawn's income increases and she decides to spend all her income on these two goods, then Dawn's total utility from consuming these two goods will likely to increase as much as the income increases.
Budget constraint represents a consumer's limited consumption pattern because of the limitation of income. Budget constraint is affectedd by a consumer's income and product's price.
Utility is the total satisfaction or benefit a consumer gains from consuming a good or service. Rationally, a consumer will strive to maximize their utility. Consumer's utility could be used to measre or quantify products set in budget constraint.
Based on the case, we can assume that for Dawn, the utility of Burritos is 8 and Salad is 4. This information is supported with Dawn's budget constraint graph.
When Dawn's income increases, the budget constraint will also move to the right and allows Dawn to purchase more goods. The units purchased will increase as much as the income increase.
The increase in units purchased will also increase the goods' utility. The goods total utility will increase in line with the increase of units of purchased.
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