1. Socially Optimal Thneed Production (Graphical Analysis) based on Dr. Seuss' The Lorax. There is only one question, but it has several parts, (a) through (), below, plus (k) and (1) for extra credit. The demand curve and supply curve for Thneeds ("A fine something that all people need," according to the Once-ler Group's web site) are given by Q" = 100 -5P and Q5 = 2.5P - 5 [HINT: these are regular-that is economically sensible-demand and supply curves that say "consumers and producers observe prices and decide what quantity to consumer or produce."] Thneeds are produced from the bright-colored tufts of the Truffula Tree. Truffula Trees provide important food and shade resources for Brown Bar-ba-loots-a keystone species in the Trufula forest known to delight tourists with their behavior of frisking about in their Bar-ba-loot suits. Because Thneed production involves cutting down Truffula Trees, there is an external cost imposed on society: degrading the Bar-ba-loot habitat leads to lost tourism revenue. Thneed production also produces "smogulous smoke" and "gluppity glup" which harm, respectively, the Swomee Swan and Humming Fish populations