2. Commodity Trading in NAFTA [7 points] Examine the market for a commodity (Le. a homogeneous product) traded among many independent firms and consumers in North America. Assume that firms can move their product freely across national borders due to the North American Free Trade Agreement (NAFTA), but that the market is isolated from the rest of the world. Information on the Willingness to Pay (WTP) of consumers and Costs of Production for firms is given in the data tables below. Consumers are only interested in purchasing at most only one (1) unit of the commodity per year and firms can produce at most only one (1) of the commodity per year. A. [3 points] What do you predict would be the market equilibrium price and market equilibrium quantity for this commodity? Why? In addition to a short explanation, please use tables or a well labeled graph to illustrate your solution. B. [2 points] Suppose that the costs of production for all firms fall by $300. How would this change the market equilibrium price and equilibrium quantity? Why? In addition to a short explanation, please use tables or a well labeled graph to illustrate your solution. C. [2 points] Suppose that production costs remain low and we are at the market equilibrium described in Part B. If there is an earthquake in Mexico that disrupts all production from Mexican firms, how would this change the market equilibrium price and market equilibrium quantity? Why? Again, please use tables or a graph to illustrate