1. Ben has preferences for labor and leisure that can be summarized by the following utility function: U=LC Ben is not working at all right now. Assume that he has a maximum of 80 hours of time available for working (or leisure) each week and $600 to spend on consumption goods each week using funds available from the returns on an investment. a. What is his reservation wage?1 How do you know? Explain and show your work. Draw a diagram to illustrate the situation. b. Suppose that the value of his investment income falls and he now has $100 less to spend each week. What is his new reservation wage? Draw a diagram (or add to the one from part a) to illustrate the situation. c. Using your diagram from part (b), explain how (if at all) the drop in investment income changes the likelihood that Ben will start working