Learning Contents:                                                              ·          Concept of Budget Set ·          Concept of Budget line &Budget Equation ·          Assumptions of Budget Line and Budget Equation ·          Budget line and Attainable and Non-attainable combinations Introduction: As studied earlier, a consumer prefers to be on a higher indifference curve than the lower ones as the former gives him more satisfaction than the latter. In the real-world, consumers’ spending decisions are bounded by the given income or budget. A rational consumer is one who spends his money on different goods and services in such a way that he can maximize his satisfaction with the limited income. A consumer usually performs expenditure out of the income he receives in a given period of time. A consumer's spending can be done in different ways like his current income, savings, and borrowings. When a consumer cannot save or borrow money, he performs the expendit