Question #4. (10 marks) Wildon Company wants to create a new housing development on the Sushap Lake wetland at Salmon Arm. Green Peace activists are adamantly opposed to the housing development since the proposed site would destroy the natural habitat and the scenic beauty of the wetland. How would an economist analyze this situation? Illustrate your answer with a supply and demand diagram. What would be the most difficult part of implementing your plan? Question #5. (10 marks) The figure below shows the demand and supply of a certain product. MPC Price MPH MSE 12 18 24 30 36 42 48 Quantity per period a) If this depicts an unregulated market what would be the equilibrium price and quantity? b) If this product was taxed by an amount equal to the external costs, what would be the equilibrium price and quantity? c) Alternatively, if buyers of this product were subsidized by an amount equal to the external benefits, what would be the equilibrium price and quantity? d) Finally, if this product were both taxed and subsidized by an amount equal to the external costs and benefits, what would be the equilibrium price and quantity