CUET Economics 2024 - According to the Theory of Consumer Behaviour, P_1X_1 + P_2X_2 ≤ M is called the Consumer's _____________ | PYQs + Solutions

CUET Economics 2024

Micro

Consumer Behaviour & Demand

Easy

According to the Theory of Consumer Behaviour, $P_1X_1 + P_2X_2 ≤ M$ is called the Consumer's _____________

Budget

Budget Set

Budget Constraint

Budget Behaviour

✅ Correct Option: 3

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budget -> just money

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budget set -> all the possible bundles of commodity which can be purchased with full or below-optimal utilization of the budget

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✅ budget constraint -> $P_1X_1 + P_2X_2 \leq M$

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budget behaviour -> how consumer acts

As per NCERT:

The inequality

P_1X_1 + P_2X_2 ≤ M

is called the consumer’s budget constraint.

The set of bundles available to the consumer is called the budget set. The budget set is thus the collection of all bundles that the consumer can buy with her income at the prevailing market prices.

CUET Economics 2024 PYQs

According to the Theory of Consumer Behaviour, P1X1+P2X2≤MP_1X_1 + P_2X_2 ≤ MP1​X1​+P2​X2​≤M is called the Consumer's _____________

Keyboard Shortcuts

According to the Theory of Consumer Behaviour, $P_1X_1 + P_2X_2 ≤ M$ is called the Consumer's _____________