Note: To receive full credit, show work where applicable, type your answers, and submit one copy per group on Gradescope. Question 1 - Green Paradox (20 points) There are two scenarios: Alpha and Bravo. They have identical demand functions, initial resource stocks, and extraction cost functions. The difference is the availability of a backstop. in Alpha, a backstop with constant MC is available immediately {at time t = B}. In Bravo, we know now it = B] that a backstop with constant MC {identical to Alpha's} will become available at time t = 25. A. [5 points} Suppose that in Scenario Alpha, the backstop begins to be used at time t = 25 {i.e., not immediately even though it is available now]. 1|.l'll'hat, ifany, is the difference in extraction trajectories in the two scenarios? Explain your answer briey. [5 points} Does the availability of the backstop result in a Green Paradox? Explain. [1B points} Scenario Charlie involves uncertainty; the time at which the backstop will become avail able is a random variable with expected value t = 25. The time of availability might be smaller or larger than t = 25. lCompare the equilibrium in Scenario Charlie with those in Scenarios Alpha and Bravo and justify your conjectures. 5'7?\