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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 34

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 price of the first good is doubled, but the other values are unchanged, 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 price of the first good is doubled, but the other values are unchanged, what is the  x_{2}-   intercept of the new budget constraint?   A)   \frac{2 k}{p_{2}}   B)   \frac{2 k}{p_{1}}   C)   \frac{ k}{p_{2}}  D)   \frac{k}{p_{1}}


A) 2kp2\frac{2 k}{p_{2}}

B) 2kp1\frac{2 k}{p_{1}}

C) kp2\frac{ k}{p_{2}}
D) kp1\frac{k}{p_{1}}

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