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:

“We might come closer to balancing the Budget if all of us lived closer to the Commandments and the Golden Rule.”
—Ronald Reagan (b. 1911)

“He is a friend of all just men and a lover of the right; and he knows more than how to talk about the right—he knows how to set it forward in the face of its enemies.”
—Woodrow Wilson (1856–1924)