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Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour2 Marks
Question
Explain the meaning of 'Budget set' and 'Budget line'.
✓

Answer

Budget set refers to the set of possible combinations of two goods which the consumer can afford with his income at given prices.
From the budget set if only such bundles are taken on which total expenditure equals total income and plotted on a graph, we get a line called the budget line.

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