Each question below is werth a maximum of 3 points each. Add your answers in the space below. The box will expand as you write. Think before you write. A concise, clear answer will receive more points than a rambling, unclear answer. Please keep your answers to each of the questions to about 2-4 A sentences. The price of water paid by California farmers can be as much as 10 times lower than the price paid by non~ _ farm business, by virtue of legal agreements made more than 100 years ago between the farmers who owned the land then and the state government. The legal agreements continue today for the current owners of that agricultural land. The agreements stipulate that the farmer must use the water or lose their rights to that water. They cannot sell it. o (1) Argue that the marginal non-agriculture business water purchase is socially more valuable than the marginal water purchase by agriculture business. Assume there are no eaternalities. . (2) Argue that this answer also implies there is too much water used by agriculture and too little used by t non-agriculture. -_ (3) Argue that if farmers with low-priced water could sell that water to others, they would,Imd that both ' farmers and non-farmers would be better off. ' _ o (4) Argue that if farmers could sell water, then some low4va1ue, but water-intensive crops, grown in California, such as alfalfa (livestock feed), would cease to be grown