Suppose We Buy Quantities $x_1$ And $x_2$ , Respectively, of Two Goods $p_{1} x_{1}+p_{2} x_{2}=k$

question 19

Multiple Choice

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) \(\frac{k}{2 p_2}\)

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