Answer:
Budget Set It refers to the set of all possible combinations of two goods which a consumer can afford, at his given income and prices in the market. Equation of budget set is\[{{P}_{x}}.{{Q}_{x}}+{{P}_{y}}.{{Q}_{y}}\le Y\] The following factors can lead to a change in the budget set: (i) When the Level of Income Changes With the increase or decrease in the income of the consumer, new combinations of a set of two goods can be attained. (ii) When Price of One Good Changes If the price of one good changes, the consumer can increase or decrease the consumption of other good depending on the nature of changes. (iii) When Price of Both Goods Changes If the price of both goods changes, the consumer can increase decrease the consumption of both the goods and new combinations of a set of two goods will be attained.
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