Reginald Is Fond of Cigars

question 23

Multiple Choice

Reginald is fond of cigars.His utility function is U(x, c) = x + 10c - .5c², 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 increase was as bad for him as losing income of

• A)$5.
• B)$7.25.
• C)$9.
• D)$8.
• E)$8.50.

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Definitions:

Normally Distributed

A type of distribution in which the data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Standard Deviation

A measure of the dispersion or variability within a set of numerical data, indicating how much individual data points differ from the mean.

Mean

The mean of a set of numbers obtained by summing them up and then dividing by the total number of values.

Normally Distributed

Refers to data that fall in a bell curve pattern centered around the mean, used to describe a distribution in statistics.