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Originally the consumer faces the budget line PIXI + P2X2 = m . Then the price of good 1 doubles, the price of good 2
Originally the consumer faces the budget line PIXI + P2X2 = m . Then the price of good 1 doubles, the price of good 2 becomes 8 times larger,
and income becomes 4 times larger. Write down an equation for the new budget line in terms of the original prices and income.
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