Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of

Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of

Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of




Answer: $8.50.