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

question 34

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 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) \(\frac{k}{p_{1}}\)

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Definitions:

Sodium

A chemical element, symbol Na, that is a highly reactive metal and an essential mineral for living organisms.

Potassium

A chemical element with symbol K and atomic number 19, essential for various bodily functions including neural activity and muscle contraction.

Cognitive Processes

Mental activities involved in acquiring, processing, and storing knowledge, such as perception, memory, and reasoning.

Beta-Endorphin

A peptide involved in the pain and stress responses of the body; it acts as a natural painkiller.