[MarkD]

First question I would consider is:
What has the button been doing in similar situations in the past? Is 2xBB his standard steal?

The type of hand I would put your opponent on in this spot is above average - he is not stealing with garbage. He went 2xBB because he doesn't want to give anyone a free play but he also wants to get action. I think he has a medium pair here a large amount of the time (something like 77-TT).

He also may have garbage and wanted to steal cheap. Has there been a lot of steals lately and if so what has been the common price?

Anyways, having gone through all of that I would raise him again and make it about 1200 to go. This gives me the initiative, defines his hand a little better, and gets some money in the pot when I think I have a decent chance of winning (the iniative helps me here). It's also enough to put the fear into your opponent for his whole stack without risking much of your own stack.