CUET 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: 2

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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 or budget line -> $P_1X_1 + P_2X_2 = M$ (this is "equal to" not "less than or equal to")

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Budget constraint has an "equal to" sign:

P_1X_1 + P_2X_2 = M

, hence NOT the answer. Please check your NCERT books!

Budget set has the "less than and equal to" sign:

P_1X_1 + P_2X_2 \leq M

, hence, the answer.