Question

Difference between budget constraint and budget set

Answer 1

A budget set represents those combinations of consumption bundles that are available to the consumer given his/her income level and at the existing market prices. On the other hand, budget constraint implies that the total amount spent on two goods together should be less than or equal to his/her given income level.

Answer 2

A budget set representing the combination of consumption bundles that are available to the consumer income level and existing price