Question

what is budget set explain what can lead to change in budget set

Answer 1

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is the set of all possible combination of the two goods which are consumer can afford given his income and prices in the market budget set is based on the assumptions of constant income of consumer and constant prices of the commodities any change in the economic of the consumer for and price of the commodity will lead to change in the budget set

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Answer 2

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.

Budget set is based on the assumptions of constant income of consumer and constant price of the commodities. Any change in the income of the consumer or/and price of the commodity, will lead to change in the budget set.