Question -
Answer -
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to a consumer, identify those that cost will him/her exactly Rs 40.
Answer
(i) P1 = Rs 10
P2 = Rs 10
M = Rs 40
Budget set ⇒ P1x1 + P2x2 ≤ M
10x1 + 10x2 ≤ 40
The bundles that areavailable to the consumer should cost less than or equal to Rs 40.
Horizontal intercept 
Vertical intercept
Slope 
The bundles in the shadedregion (ΔAOB) are all available to the consumer, including the bundles lying onthe line AB.
| (0, 0) | (0, 1) | (0, 2) | (0, 3) | (0, 4) |
| (1, 0) | (1, 1) | (1, 2) | (1, 3) | (1, 4) |
| (2, 0) | (2, 1) | (2, 2) | (2, 3) | (2, 4) |
| (3, 0) | (3, 1) | (3, 2) | (3, 3) | (3, 4) |
| (4, 0) | (4, 1) | (4, 2) | (4, 3) | (4, 4) |
(ii) The coordinates thatlie on the line AB cost exactly the same as the income of the consumer. Thebundles are as follows:
(0,4), (1, 3), (2, 2), (3, 1), (4, 0)