What do you mean by the budget set of a consumer?

What is Budget Line?

Explain why budget line is downward sloping?

Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2 if she spends her entire income. The prices of the two goods are Rs.6 and Rs.8 respectively. How much is the consumer's income? 

A consumer wants to consume two goods. The prices of the two goods are Rs.4 and Rs. 5 respectively. The consumer's income is Rs.20.
(i) Write down the equation of the budget line.
(ii) How much quantity of good 1 can the consumer consume if she spends her entire income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?
How does the budget line change if the consumer's income increases to Rs.40 but the prices remain unchanged?

A consumer wants to consume two goods. The prices of the two goods are Rs.4 and Rs. 5 respectively. The consumer's income is Rs.20.
(i) Write down the equation of the budget line.
(ii) How much quantity of good 1 can the consumer consume if she spends her entire income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?
How does the budget line change if the price of good 2 decreases by a rupee but the price of good 1 and the consumer's income remain unchanged?

A consumer wants to consume two goods. The prices of the two goods are Rs.4 and Rs. 5 respectively. The consumer's income is Rs.20.
(i) Write down the equation of the budget line.
(ii) How much quantity of good 1 can the consumer consume if she spends her entire income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?
What happens to the budget set if both the prices as well as the income double?

What are monotonic preferences?

If a consumer has monotonic preferences, can she be indifferent between the bundles (10, 8) and (8, 6)?

Suppose a consumer's preferences are monotonic. What can you say about her preference-ranking over the bundles (10, 10), (10, 9), (9, 9).

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?

Why is budget line negatively sloped?

A consumer wants to consume two goods. The prices of the two goods are Rs.4 and Rs. 5 respectively. The consumer's income is Rs.20.
(i) Write down the equation of the budget line.
(ii) How much quantity of good 1 can the consumer consume if she spends her entire income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced at Rs.10 and the consumer's income is Rs.40.
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer's. Identify those which cost her exactly 40.