Budget Set

A budget set or opportunity set includes all possible consumption bundles that someone can afford given the prices of goods and the person's income level. The budget set is bounded above by the budget line. Graphically speaking, all the consumption bundles that lie inside the budget constraint and on the budget constraint form the budget set or opportunity set.

By most definitions, budget sets must be compact and convex.

Microeconomics

Major topics	Aggregation Budget Consumer Convexity and non-convexity Cost Cost–benefit analysis Distribution Deadweight loss Income–consumption curve Duopoly Equilibria Economies of scale Economies of scope Elasticity Exchange Expected utility Externality Firms General equilibria Household Information Indifference curve Intertemporal choice Marginal cost Market failure Market structure Monopoly Monopsony Oligopoly Preferences Production Profit Public goods Returns to scale Risk Scarcity Shortage Social choice Sunk costs Supply & demand Surplus Uncertainty Utility Welfare

Related	Behavioral Business Computational Statistical decision theory Econometrics Experimental Game theory Industrial organization Mathematical economics Microfoundations of macroeconomics Managerial Operations research Optimization

Famous quotes containing the words budget and/or set:

“The United States is the only great nation whose government is operated without a budget. The fact is to be the more striking when it is considered that budgets and budget procedures are the outgrowth of democratic doctrines and have an important part in developing the modern constitutional rights.... The constitutional purpose of a budget is to make government responsive to public opinion and responsible for its acts.”
—William Howard Taft (1857–1930)

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—George Berkeley (1685–1753)