Answer to Question #125819 in Microeconomics for Faria

Question

Originally, the consumer faces the budget line p1 x 1 + p2 x 2 = m. Then the price of good 1 double, the price of good 2 becomes 4 times larger, and income becomes 3 times larger. Write down an equation for the new budget line in terms of the original prices and income. Show the original and new budget lines in a diagram. 

Answer 1

$$p_1+2p_2=m$$

$$2p_1+8p_2=3m$$