3) Suppose linear MNBs for two agents, as depicted in figure 8.1 in the text, and indexed by the subscripts. Suppose that the natural water demands are specified as: MNB1=32-w1 and MNB2=25-0.5w2 Water units are acre-feet per year, and monetary units are dollars. Additionally, agent 1 owns twenty acre-feet and agent 2 owns fifty acre-feet of water rights. a) What is the optimal amount of water for one of these agents to lease to the other? b) Illustrate these results on a graph like figure 8.1 in the text. Note on the graph the net gains from trade. c) What range of prices might be used by these two agents? At what price brings the MNBs into equilibrium? 3) Suppose linear MNBs for two agents, as depicted in figure 8.1 in the text, and indexed by the subscripts. Suppose that the natural water demands are specified as: MNB1=32-w1 and MNB2=25-0.5w2 Water units are acre-feet per year, and monetary units are dollars. Additionally, agent 1 owns twenty acre-feet and agent 2 owns fifty acre-feet of water rights. a) What is the optimal amount of water for one of these agents to lease to the other? b) Illustrate these results on a graph like figure 8.1 in the text. Note on the graph the net gains from trade. c) What range of prices might be used by these two agents? At what price brings the MNBs into equilibrium