Question

what is budget set¿¿¿¿​

Answer 1

Answer:

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. The budget set is bounded above by the budget line.

Answer 2

Answer:

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

Explanation:

There are two factors that affect a consumer’s choice of quantities to purchase between two goods: prices and money income. Price times quantity for each good gives us the expenditure incurred on purchasing a good. In our analysis, there are two goods. So, the expenditure on both goods must be less than or equal to the money income of the consumer. This is the budget constraint faced by a consumer. It is depicted as:

P1.X1 + P2.X2 <= M

All those bundles that satisfy this criterion are set to form a part of what is called the budget set. The consumer can choose to consume out of any of these bundles.