Explanation:
first of all, please look at what is the original, and what is the result of the dilation.
hmmm ?
the large object ABCD is the original, and the small object A'B'C'D' is the dilation result.
why ?
it is usually the convention to use the ' for the result of a transformation.
so, if anything, the scale factor would be 1/2. and not 2.
then, dilation works with the points coordinates, as they are multiplied by the scale factor.
since we can't see the origin, we can't really tell, if the coordinates were cut in half. the visible picture raises some doubts, but it could be possible ...