Question

Different between budget set and budget line

Answer 1

1. Budget set is a possibility or set of consumption bundle which someone can afford by given price of Goods and service and given level of income.

2. Budget line is graphically representation of budget set. It is a straight line on graph because we assume that given income is fixed and given price of goods and service but consumer can change the set or qty of goods and services.

Answer 2

Answer:

Budget line refers to graphical presentation of different combination of two goods that can be purchased from given income.

Budget set refers to different combination of two goods that is available for consumer from given income.