Reginald is fond of cigars. His utility function is U (x; c) = x+ 10c:5c 2 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

The mccolls have made an offer on a new home. the home is new construction and scheduled to be completed by the end of the year. they provide a purchase deposit--a check in the amount of $40,000--to their agent, suzette. suzette, at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of receipt of the funds. did suzette follow the proper procedures? a. no, the check should not have been cashed. if a check is used as an earnest money deposit, it is to be held until acceptance of the offer. the seller must also be informed the buyer's check is being held and not negotiated. b. yes, suzette deposited the earnest money in the broker's trust fund account as directed. she also deposited the check within three business days of receipt. unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed. c. no, suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days. d. both a and c