The set of all possible bundles of goods and services that can be purchased with a consumer's income is referred to as a ________.
A) demand set
B) supply set
C) budget set
D) universal set

Question

Quizplus · Accepted Answer

The term "budget set" refers to the set of all possible combinations of goods and services that a consumer can purchase given their income and the prices of the goods. Option A, "demand set," refers to the quantity of a particular good or service that consumers are willing and able to buy at different prices, while option B, "supply set," refers to the quantity of a particular good or service that producers are willing and able to sell at different prices. Option D, "universal set," is a concept from set theory and refers to the set of all possible elements in a given context, which is not relevant in this case. Therefore, the best choice is C.

The Set of All Possible Bundles of Goods and Services