3. In Taiwan, there is only one beer producer, called Taiwan Beer. The Taiwanese government has passed a law prohibiting any other company from producing and selling beer in Taiwan. Suppose that the demand for beer in Taiwan increases.

a. Explain what happens in the market for beer in Taiwan in the short run. Specifically, explain what happens to the price of beer, the number of beer producers, and the profits of beer producers.

b. Explain what happens in the market for beer in Taiwan in the long run. Specifically, explain what happens to the price of beer, the number of beer producers, and the profits of beer producers.

c. Explain who benefits and who is hurt by the government regulation granting Taiwan Beer a monopoly.