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:

Automatism

In painting, the process of yielding oneself to instinctive motions of the hands after establishing a set of conditions (such as size of paper or medium) within which a work is to be created.

Paranoic-critical

A method developed by Salvador Dalí meant to access the subconscious and enhance artistic creativity through a systematic irrational thought process.

Abstract Sculpture

A form of sculpture that emphasizes shapes, colors, and textures over realistic representation, focusing on the inherent beauty of the materials used.

Void

An empty space or emptiness, often used in art and architecture to describe areas devoid of any elements or materials.