1.To answer this question, please assume that all the paper used in the US comes from trees grown in US forests.All forests are owned by the private sector.Assume further that it takes one acre of forest to produce one unit of paper.Answer the following questions.

a.The demand for paper is given by Qd = 60-2p while the supply is given by Qs = 2p.In a free market what is the market price?How much paper is produced?How many acres of forest are there?