Consider a landowner that uses water as a primary input into the production of food. Similar to the problem above, suppose the land has a general production function of f(w) = aw - aw, where w is the amount of water applied to the land. Suppose food output receives a price of py in a perfectly competitive market. 2.A. [1 point] Suppose that water is allocated in a competitive market. Denote the price of water as Pw. Derive the landowner's demand for water. 2. B. [1 point] Suppose now that there are two types of uses for water: cheese and potatoes. Using the parameter values in the Table below, find the market equilibrium water allocation and price if the amount of water supplied to the market is w = 9. Cheese Potatoes 3 b= DE 10 2.C. [1 point] Now suppose that cheese producer is allocated all the available water supply as a water right. Suppose that the cheese producer can trade any amount of her water rights with the potato farmer, but every unit of water exchanged incurs a cost of d = 12. What is the equilibrium water allocation