Question: Consider Becker's Time and Money Prices model and how it applies to waiting in lineups. Richard spends 24 hours a day studying and working in

Consider Becker's Time and Money Prices model and how it applies to waiting in lineups. Richard spends 24 hours a day studying and working in the psychology labs. He also drinks a lot of coffee. Richard's utility function is U = SC. The job in the labs pays $24 per hour; he has no non-labour income. Coffee has a money price of $2.00 per cup but there is also a 15-minute lineup at Tim Horton's and these time prices contribute to the total price he pays for coffee. Studying has no money price, but the time price of studying is 1.0; one hour of studying costs one hour of his time. Assess how much time Richard will spend drinking coffee, studying and working. Provide a labelled Indifference Curve diagram to illustrate his choices for C (horizontal) and S (vertical). Tim Horton's offers a V.I.P. Coffee Club. The price of coffee is still $2.00 a cup but there are no lineups for a member. What is the most that he would pay to join this club? What happens to the amount of time he spends studying? Explain

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