Question

What is budget set ??

Answer 1

$\huge\boxed{\boxed{\texttt{\underline{Budget set}}}}$

⬛ Budget set is the level at which a person can afford income and other prices of goods .

⬛ Budget set is also known as the opportunity set .

⬛ A budget set is always set above the budget line .

⬛ A budget line is a graph representing goods prices a person can afford within the income of that person .

⬛ Budget set is hence a target which is above the budget line .

⬛ Generally budget set is of two types : compact and convex .

⬛ Any change in the price of goods have an impact on the budget set.

⬛ Any change in the income of the person have an impact on the budget set.

Answer 2

Budget set is the level at which a person can afford income and other prices of goods .Budget set is also known as the opportunity set .