Define budget set.
Give the equation of Budget Set.
A budget set refers to attainable bundles of a set of two goods, given the prices of goods and the income of the consumer.
Equation of the budget set is P1X1 + P2X2 < M. where
X1 = Quantity of Good-1
X2 = Quantity of Good-2
P1 = Price of Good-1
P2 = Price of Good-2