Question: Joe is a smoker. He has a utility function for cigarettes smoked indoors (q 1 ) and a composite good (q 2 ) given byU(q

Joe is a smoker. He has a utility function for cigarettes smoked indoors (q1) and a composite good (q2) given byU(q1,q2) = 15q10.6+ q2.Joe's income is $1,000 and faces prices p1= 5 and p2= 1. The government is planning to ban indoor smoking. How much money would we have to give Joe to compensate him for this ban?

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