Match List-I with List-II

List-I	List-II
(A) Budget Set	(I) $-(P_1/P_2)$
(B) Slope of the budget line	(II) $M/P_1$
(C) Horizontal intercept of the budget line	(III) $P_1 X_1 + P_2 X_2 \le M$
(D) Vertical intercept of the budget line	(IV) $M/P_2$

Choose the correct answer from the options given below:

Option 2: (A) - (III), (B) - (I), (C) - (II), (D) - (IV) -> Let me explain each match:

(A) Budget Set matches with (III) P₁X₁ + P₂X₂ ≤ M: The budget set represents all combinations of two goods (X₁ and X₂) that a consumer can afford given their income M and prices P₁ and P₂. The inequality shows all affordable bundles.

(B) Slope of the budget line matches with (I) -(P₁/P₂): From the budget equation P₁X₁ + P₂X₂ = M, rearranging gives X₂ = M/P₂ - (P₁/P₂)X₁. The slope is the coefficient of X₁, which is -(P₁/P₂), representing the rate at which one good must be traded for another.

(C) Horizontal intercept matches with (II) M/P₁: The horizontal intercept occurs when X₂ = 0. Substituting in the budget equation: P₁X₁ = M, therefore X₁ = M/P₁. This shows maximum quantity of good 1 if all income is spent on it.

(D) Vertical intercept matches with (IV) M/P₂: The vertical intercept occurs when X₁ = 0. Substituting: P₂X₂ = M, therefore X₂ = M/P₂. This shows maximum quantity of good 2 if all income is spent on it. -> correct