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:

Missionaries

Individuals who are sent to promote their religion in a foreign country through preaching, education, and other activities intended to convert others.

Mexica People

The Mexica people, also known as the Aztecs, were a Nahuatl-speaking indigenous people of the Valley of Mexico who built an extensive empire in central Mexico in the 14th, 15th, and 16th centuries before being conquered by the Spanish.

Cortes

Hernán Cortés, a Spanish conquistador who led an expedition that caused the fall of the Aztec Empire and brought large portions of what is now mainland Mexico under the rule of the King of Castile in the early 16th century.

Malintzin

Also known as La Malinche, she was an Indigenous woman who played a crucial role as an interpreter, advisor, and intermediary for the Spanish conqueror Hernán Cortés during the Spanish conquest of Mexico.