difference between budget set and budget line?

  • 7

Budget set is a set of quantities of two or more comodities while budget line is a graphical line drawn by plotting all the budget sets whose cost is equal to the income of the person :)

  • 11

 Budget set is the set of all the different combinations of two goods(bundles) that the consumer can buy with his given money income whereas budget line is a line which graphically shows the different combination of two goods(bundles) that the consumer can buy with its given money income at a pariticular period of time

  • 1

BUDGET LINE: A budget line shows all the combinations of 2 goods that a consumer can buy, given his income and prices of the 2 goods.

BUDGET SET: A budget set is the set of bundles of goods available to a consumer

  • 25
What are you looking for?