Consumption bundle
Also called: Bundle · Topic: Consumer Behaviour, Demand and Elasticity · NCERT: Class 12, Ch 2 "Theory of Consumer Behaviour"
Meaning
A consumption bundle is any combination of quantities of goods that a consumer could buy. In the two-good model, it is written as (x₁, x₂), where x₁ is the quantity of the first good and x₂ is the quantity of the second. Each quantity can be positive or zero. Economists compare bundles to find the one that gives the consumer the most satisfaction within her budget.
Example
Take bananas (x₁) and mangoes (x₂). The bundle (5, 10) means 5 bananas and 10 mangoes, and (10, 5) means 10 bananas and 5 mangoes. They are different bundles even though each has 15 fruits in total. If both fruits cost ₹5 each and income is ₹20, the bundle (2, 2) is affordable but (3, 3) is not.