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What do you mean by Consumption Set?
Consumption Set:
We notice a consumer faced along with possible consumption bundles within consumption set X. We generally assume that X is the nonnegative orthant into RL as demonstrated in the right figure, but more exact consumption sets may be utilized. For illustration, it may permit consumptions of some good into a suitable interval such like leisure as demonstrated in the left figure, or we might only comprise bundles which would provide the consumer at least a subsistence existence or which includes only integer units of consumptions as demonstrated in figure. We suppose that X is a closed and convex set unless otherwise stated. There convexity of a consumption set implies that each good is divisible and can be consumed through fraction units.
The left figure: A consumption set which reflects legal limit onto the number of working hours. The right figure: the consumption set R2+
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a) Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20
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