Aqueus is a classic monopolist earning positive economic profits.

(h)Gaiana is a small firm that sells a complementary good to Aqueus'sproduct in a perfectly competitive market. Assuming Gaianawas in long-run equilibrium, illustrate the short-run effect of the government intervention from part (e) on Gaianasupply and demand in a separate graph. If Gaianaearns any economic profit or loss, shade it.

(i) Assume that Gaiana operates in a constant-cost industry.What would happen to Gaiana's firm supply and demand in the long run? Explain.