(a) What is the main economic argument against the 1998 Copyright Term Extension Act (which extended copyright terms for 20 years) being applied retroactively to existing works? Include a diagram to answer this question. (b) Using a simple numerical example, illustrate how the CTEA provides very little additional incentive for artists to create new works. For the example, consider an author who writes a novel that generates revenues of $100,000 per year while on copyright, and who lives for 30 years after publishing the novel. Recall that the formula for calculating the net present value (NPV) of a stream of annual payments equal to CP that lasts for n years is: NPV CP [1-(1/1+r)^n]/r where r is the discount rate which you can assume is 0.05 (or 5%). Also recall that the CTEA extended copyright from life of the author plus 50 years to life of the author plus 70 years. Helpful calculations: (1/1.05) 80 0.02 (1/1.05)^20 0.38 1.05 80 49.56