Budget set definition

1.	Budget set definition
Answer» Budget set is the set of all possible combinations of the two goods which a consumer can afford , given his income and prices in the market.<br>A budget set is a set of attainable combination of dgoods and services, given price and income of the consumer<br>The set of bundles available to the consumer is called the budget set. The budget set is the collection of all bundles that the consumer can buy with her income at the prevailing market prices. It is represented by the following condition of inequality: P1x1 + P2x2≤M.<br>A budget set or opportunity set includes all possible consumption bundles that someone can afford given the prices of goods and the person\'s income level.

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