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Suppose We Buy Quantities x1x_1 And x2x_2 , Respectively, of Two Goods p1x1+p2x2=kp_{1} x_{1}+p_{2} x_{2}=k

Question 19

Multiple Choice

Suppose we buy quantities x1x_1 and x2x_2 , respectively, of two goods.The following graph shows the budget constraint p1x1+p2x2=kp_{1} x_{1}+p_{2} x_{2}=k
, where P1P_1 and P2P_2 are the prices of the two goods and k is the available budget.If the budget is doubled, but prices remain the same, what is the x2x_{2}-
intercept of the new budget constraint?  Suppose we buy quantities  x_1  and  x_2  , respectively, of two goods.The following graph shows the budget constraint  p_{1} x_{1}+p_{2} x_{2}=k   , where  P_1  and  P_2  are the prices of the two goods and k is the available budget.If the budget is doubled, but prices remain the same, what is the  x_{2}-   intercept of the new budget constraint?   A)   \frac{2 k}{p_1}   B)   \frac{2 k}{p_2}  C)   \frac{k}{2 p_1}  D)   \frac{k}{2 p_2}


A) 2kp1\frac{2 k}{p_1}

B) 2kp2\frac{2 k}{p_2}
C) k2p1\frac{k}{2 p_1}
D) k2p2\frac{k}{2 p_2}

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