Question
How is budget line different from budget set?
| Basis of Difference | Budget Set | Budget Line |
| 1. Meaning | Budget set is defined in terms of this equation: $P_1 X_1+P_2 X_2 \leq Y$ | Budget line is defined in terms of this equation: $P _1 X _1+ P _2 X _2= Y$ |
| 2. Combinations included | Budget set includes all combinations of goods X and Y (given their prices) on which the actual expenditure is equal to or less than the given income of the consumer. | Budget line includes only such combinations of goods X and Y (given their prices) on which the actual expenditure by the consumer is exactly equal to his given income. Specifically, it does not include such combinations which are attainable but where: consumer's expenditure < consumer's income. |
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
| Q | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| TC | 10 | 30 | 45 | 55 | 70 | 90 | 120 |
| Output (Units) | Total Revenue (₹) | Marginal Cost (₹) |
| 1 | 15 | 14 |
| 2 | 16 | 24 |
| 3 | 17 | 30 |
| 4 | 18 | 51 |
| 5 | 19 | 75 |