Reginald is fond of cigars. His utility function is U (2, c) = x+10c-.5c? where c is the number of cigars he smokes per week and x is the money that he spends on 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 the following amount of income:
