CUET Preparation Today
Which of the following will NOT cause a change in the budget set of a consumer? |
Change in quantities of goods purchased by the consumer. Change in the prices of both the goods purchased by the consumer. Change in the income of the consumer. change in the price of any one of the two goods purchased by the consumer, price of the other good remaining same. |
Change in quantities of goods purchased by the consumer. |
The correct answer is Option (1) → Change in quantities of goods purchased by the consumer. The budget set represents all possible combinations of two goods that a consumer can afford given their income and prices. It changes only when:
The Change in quantities of goods purchased by the consumer is a movement along or within the existing budget set or budget line. It represents a different choice of consumption bundle, but it does not change the set of all possible affordable bundles (the budget set), which is defined by the fixed income and fixed prices. |
