Divisible goods
Also called: Perfectly divisible goods · Topic: Consumer Behaviour, Demand and Elasticity · NCERT: Class 12, Ch 2 "Theory of Consumer Behaviour"
Meaning
Divisible goods are goods that can be bought in any amount, including parts of a unit, not only in whole numbers. When goods are divisible, the budget set is no longer a set of separate points. It becomes a continuous triangle on and under the budget line. That is why smooth budget lines and indifference curves are drawn.
Example
You can buy half a kg of rice or a quarter litre of milk, so these are divisible goods. Oranges and bananas are sold in whole units only. With ₹20 and bananas at ₹5, you can buy 3 or 4 bananas, but not 3.5.
Don't confuse with
- Goods sold in whole units only: when goods come only in whole numbers, the budget set is a set of dots. In Class 12 Example 2.1 (income ₹20, both goods at ₹5), there are just 15 affordable bundles, not a filled triangle.