Consider a consumer's choice based on only 2 commodities i.e., \(X \in R_{+}^2\), where X is a set of all commodity bundles which the consumer can conceive of. Suppose x and y are the 2 different commodity bundles and the budget set B of the consumer can be written as :
B = {(x, y) : p1x + p2y ≤ M}; xi > 0, i = 1, 2. Which of the following statements is true?
1
The budget set is an open, bounded and convex set
2
The budget set is not a bounded set
3
The budget set is a closed and non-convex set
4
The budget set is a closed, bounded and convex set