Answer:
The budget set or the consumption bundles available to the consumer will be governed by the following inequality condition: \[{{P}_{1}}{{x}_{1}}+{{P}_{2}}{{x}_{2}}\le M\] (Budget Constraint) where, \[{{x}_{1}}\] = Quantity of good 1 \[{{x}_{2}}\] = Quantity of good 2 \[{{P}_{1}}\] = Price of good 1 \[{{P}_{2}}\] = Price of good 2
You need to login to perform this action.
You will be redirected in
3 sec