] In trying to find out the answer to your question about the cost of muslin, I came across this picture. It really struck me to see it, and be reminded how fine a fabric muslin can be. When we use it today, it is as cheesecloth, because it is like a sieve for the whey.
Fine muslin of today has wonderful qualities for apparel as well as for bed linens. It does layer beautfully and when sheer enough it lets other colors show through very softly from underneath. It also "breathes" so much better than more tightly woven fabrics. Maybe that is why it was so popular for pre-electricity, pre-air conditioned fashions?
Just as an aside, there is a wonderful modern English quilter named Jennie Rayment (what an appropriate name) from Hampshire who makes three-dimensional quilts and apparel almost exclusively from muslin fabric for its washability and softness. The cover of one of her books shows her wearing a gorgeous long quilted cloak made of unbleached muslin and a muslin parasol and bag to match! C'est plus change!
] And a muslin cloak? Not for warmth, surely?
Maybe not, unless it's quilted? Would they have made quilted clothing in Regency England?