Graph 1below shows the indifference curves and budget constraints for an individual. Suppose that BC₁reflects the original prices of the goods along with the income of the consumer. Then, the price of steak changes, but both the price of veggies and income remains the same for the consumer. After the price change of steak, the consumer is now at BC₂. Note that the budget constraint BC_gis there simply to separate the income and substitution effect and is not a real budget constraint that the individual faces.