3. Holly truly loves the movies. She really loves popcorn too. Holly thinks the goods are perfect complements; she eats 4 jumbo-sized bags of popcorn for every movie she attends. To save time she always purchases her movie tickets on-line. In doing so, she avoids the 60-minute line-up at the box office. Holly pays $10.00 for a movie and $5.00 for the jumbo-sized popcorn. Watching the movie takes 2 hours. Eating the popcorn is included in the 2 hours spent watching the movie; the time cost is zero. When Holly isn't attending the movies, she works as a manager at Blockbuster (old question) and is paid $10.00 an hour. She earns $60 a day in non-labour income. a. Use Becker's theory of Time and Money Prices to calculate Holly's optimal choices to explain how she allocates her time. Now suppose that Paramount and Cineplex have both announced that they will no longer offer the on- line service for ticket purchasers. This means Holly will need to wait in line for 60 minutes to buy a ticket and then spend 2 hours watching the movie. Explain how this will affect her choices. C. Paramount and Cineplex both offer the Member's Only Club. Joining involves a fee but allows members to purchase their tickets on-line and avoid those 60-minute box office lineups each time she attends a movie. Calculate the maximum amount that Holly would pay to join the Club. 3. Holly truly loves the movies. She really loves popcorn too. Holly thinks the goods are perfect complements; she eats 4 jumbo-sized bags of popcorn for every movie she attends. To save time she always purchases her movie tickets on-line. In doing so, she avoids the 60-minute line-up at the box office. Holly pays $10.00 for a movie and $5.00 for the jumbo-sized popcorn. Watching the movie takes 2 hours. Eating the popcorn is included in the 2 hours spent watching the movie; the time cost is zero. When Holly isn't attending the movies, she works as a manager at Blockbuster (old question) and is paid $10.00 an hour. She earns $60 a day in non-labour income. a. Use Becker's theory of Time and Money Prices to calculate Holly's optimal choices to explain how she allocates her time. Now suppose that Paramount and Cineplex have both announced that they will no longer offer the on- line service for ticket purchasers. This means Holly will need to wait in line for 60 minutes to buy a ticket and then spend 2 hours watching the movie. Explain how this will affect her choices. C. Paramount and Cineplex both offer the Member's Only Club. Joining involves a fee but allows members to purchase their tickets on-line and avoid those 60-minute box office lineups each time she attends a movie. Calculate the maximum amount that Holly would pay to join the Club