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.

References

Microeconomics

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

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

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