Why is the budget line considered the boundary of the budget set ........

Economics (CUET) Consumer Behaviour and Demand

Why is the budget line considered the boundary of the budget set?

It includes every affordable bundle.

It excludes unaffordable bundles.

It shows maximum spending capacity.

All of the above.

The budget line is the boundary as it includes all affordable bundles and separates them from those that cannot be purchased.

It represents the highest consumption level possible within the given budget.

Hence, all statements are valid, making option 4 the correct answer.

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