Spring 2024 Long questions: 1. Two distinct agents have the following net benefit functions for retail water: NB1 = 300W1 - 3w2 NB2 = 200W2 - 2W2 30 units of water are available for allocation between these agents.Economics of Water Spring 2024 (c) Now if user 2 has a priority right to the first 20 units and no trades occur, quantify the aggregate losses (relative to the optimum identified above). (5 points) (d) How much water should be leased to reach the optimum allocation and what is the range of acceptable prices? (4 points) (e) If user 2 is upstream and it turns out that there is a return flow, how would you expect, intuitively, for the amount needed to be traded to change. Why? (2 points)